On the February 27, 2026 episode of Bloomberg’s “Balance of Power,” the top story was the Pentagon’s decision to declare Anthropic, a leading artificial intelligence company, a supply-chain risk. This move followed a standoff between Anthropic and the Department of Defense (DoD), which demanded unrestricted access to Anthropic’s AI technology, including the removal of ethical guardrails. Anthropic refused, risking a $200 million military contract. President Trump responded by ordering all federal agencies to phase out Anthropic’s technology within six months, warning of further action if the company did not cooperate during the transition.
The implications of this decision extend beyond Anthropic. Other AI companies, such as Google (with Gemini) and Elon Musk’s xAI (with Grok), are being considered for classified government work, but the Pentagon’s hardline stance signals that all tech firms must comply with federal demands or risk exclusion. OpenAI, for example, has not yet been cleared for classified work and has expressed concerns similar to Anthropic’s about ethical use. The episode highlighted the tension between the rapid advancement of AI, ethical considerations, and national security priorities, with experts noting that the Pentagon’s requirements could set a precedent for future government-tech industry relations.
The show also explored the practical uses of AI within the military, ranging from logistics and data aggregation to more sensitive applications like targeting and autonomous weapons. While the DoD claims it does not intend to use AI for mass surveillance or fully autonomous weaponry, experts and Anthropic remain wary, citing the fast pace of technological change and the risk of future misuse. The debate centers on whether humans should remain “in the loop” for critical decisions, especially as rival nations like China advance their own military AI capabilities with fewer ethical constraints.
Beyond the Anthropic story, the program covered other major news, including President Trump’s visit to Texas ahead of a pivotal Republican Senate primary, where he notably refrained from endorsing any candidate. The discussion touched on the dynamics of the Texas race, the potential for a runoff, and the broader implications for control of Congress in November. On the Democratic side, the contest between Jasmine Crockett and James Talarico was highlighted, with uncertainty due to volatile polling and the influence of recent media appearances.
The episode concluded with coverage of market reactions to the Anthropic news, a discussion of the Paramount-Warner Bros. merger and its regulatory hurdles, and ongoing tensions with Iran. The Pentagon’s designation of Anthropic as a supply-chain risk sent shockwaves through the tech and defense sectors, raising concerns about national security, the politicization of AI ethics, and the future of public-private partnerships in emerging technologies. The panelists emphasized that this could be the first major skirmish in a broader conflict over the role of AI in national defense and the balance between innovation, ethics, and security.
