Sadiq Khan invites Anthropic to expand in London after Pentagon fallout

TL;DR: London Mayor Sadiq Khan has written to Anthropic CEO Dario Amodei, inviting the AI company to grow its London operations. The move follows the Pentagon designating Anthropic a supply-chain risk after Amodei refused to allow Claude to be used for mass surveillance or autonomous weapons.

Khan’s letter criticised the Trump administration’s response as “a clear attempt to intimidate and punish Anthropic for refusing to remove ethical safeguards.” He told Amodei that London “could provide an even more significant location and platform for the future of Anthropic.”

Pentagon designation

The supply-chain risk label is the first time the Pentagon has applied it to a US company. It means the government considers Anthropic not secure enough for use, and insiders at the company initially feared it could affect business with partners who also work with the US government.

The White House responded to Khan’s letter through a spokesperson: “We will never allow a radical left, woke company to dictate how our United States Military fights wars.”

Under Secretary of Defense Emil Michael confirmed negotiations with Anthropic are over, writing on X: “I want to end all speculation: there is no active negotiation with Anthropic.”

Business impact so far

The commercial fallout has been limited. Microsoft confirmed it would continue embedding Anthropic technology in products for its clients, with an exception carved out for the US Department of Defense. Microsoft’s lawyers concluded that Claude “can remain available to our customers” despite the designation.

Anthropic said it plans to challenge the designation in court. A spokesperson for the Mayor’s office confirmed discussions have taken place this week with “senior leaders” at the company.

Looking forward

Khan’s letter positions London as a potential beneficiary of the US-Anthropic rift. Whether Anthropic shifts meaningful operations to the UK depends on how the legal challenge plays out and whether other government contracts come under pressure.