Small print.
Wide open.

Table of Contents

commercial customers and partners. Sales to government agencies involve additional risks, including, but not 
limited to: 

•

•

•

•

•

•

•

•

•

•

•

•

•

•

changes  in  government  fiscal  or  procurement  policies,  or  decreases  in  government  funding  available 
for procurement of goods and services generally, or for our federal government contracts specifically; 

changes in government programs or applicable requirements; 

our  ability  to  agree  on  commercial  terms  with  government  entities,  including  with  respect  to  the 
permitted use of our models, platform, and applications;

restrictions in the grant of personnel security clearances to our employees; 

our  ability  to  maintain  facility  clearances  required  to  perform  on  classified  contracts  for  U.S. 
government and non-U.S. government agencies, as applicable; 

changes  in  the  political  environment,  including  before  or  after  a  change  to  the  leadership  within  the 
government  administration,  and  any  resulting  uncertainty  or  changes  in  policy  or  priorities  and 
resultant funding; 

changes in the government’s attitude towards us as a company or our technology; 

appeals,  disputes,  or  litigation  relating  to  government  procurement,  including  but  not  limited  to  bid 
protests by unsuccessful bidders on potential or actual awards of contracts to us or our partners by the 
government; 

the adoption of new laws or regulations or changes to existing laws or regulations; 

budgetary  constraints,  reductions  in  government  spending,  operating  under  continuing  resolutions, 
disruptions from government shutdowns, or similar measures and constraints imposed by any lapses 
in appropriations for the federal government or certain of its departments and agencies; 

influence by, or competition from, third parties with respect to pending, new, or existing contracts with 
government customers; 

changes in legal obligations or political or social attitudes with respect to security or privacy issues; 

potential delays or changes in the government appropriations or procurement processes, including as a 
result of events such as war, incidents of terrorism, natural disasters, and public health concerns; and 

increased or unexpected costs or unanticipated delays caused by other factors outside of our control.

Any such event or activity, among others, could cause governments and government agencies to delay, pause, or 
cancel contracts or seek to modify their contracts, or refrain from entering into contracts with us or purchasing 
our models, platform, and applications in the future, undermine our ability to pursue future contracts, damage 
our relationships with partners and customers who also sell models, platforms, or applications to governments, 
or  reduce  the  size  or  timing  of  payment  with  respect  to  our  services  to  or  purchases  from  existing  or  new 
government customers. Any of the foregoing could have an adverse effect on our prospects, business, financial 
condition, and results of operations. 

For example, in February 2026, in response to our publicly stated position that our technology should not be 
used  for  mass  domestic  surveillance  or  fully  autonomous  weapons,  the  President  of  the  United  States  stated 
that  he  had  directed  that  all  federal  executive  agencies  cease  using  our  technology.  At  the  same  time,  the 
Secretary of War directed the Department of War to designate us as a “supply-chain risk to national security” 
and stated that “effective immediately, no contractor, supplier, or partner that does business with the United 
States military may conduct any commercial activity” with us. On March 4, 2026, the Department of War sent 
us  two  letters—one  pursuant  to  10  U.S.C.  §  3252  and  the  other  pursuant  to  Section  4713  of  the  Federal 
Acquisition  Supply  Chain  Security  Act  (“FASCSA”)—asserting  that  our  models,  platform,  and  applications 
present  a  supply-chain  risk.  These  actions  referenced  above  are  defined  herein  as  “Challenged  Actions.”  We 
vigorously challenged these Challenged Actions in Anthropic PBC v. Department of War, et al. (N.D. Cal.) and 

71