Amazon.com Inc. faces increased scrutiny as its primary AI partner, Anthropic, enters a reported dispute with the U.S. Pentagon. Anthropic allegedly refuses to permit U.S. military use of its artificial intelligence for battlefield and surveillance operations. The Pentagon is now considering designating the AI firm as a supply chain risk.
Amazon shares have declined for eight consecutive sessions amid a broader technology sector selloff. Investors remain cautious regarding the company’s projected $200 billion capital expenditure plan. This spending focuses heavily on developing AI infrastructure through 2026.
The conflict creates significant uncertainty for Amazon Web Services and its multi-billion dollar investment in Anthropic. This geopolitical tension adds a new layer of risk to Amazon’s long-term AI growth strategy.