Three of Anthropic's biggest revenue sources are slowing or stopping their spend on Claude.

On Monday, reports emerged that the Pentagon has officially stopped using Anthropic's Claude following the agency blacklisting the company by designating it a supply chain risk earlier this year. In a statement to the BBC, the Pentagon said it has "ceased the use of Anthropic products," after initially announcing in February that it would stop using Claude by August.

However, while Anthropic losing the business of the largest department of the US government has been foretold for months, the AI lab has also taken a few more hits. According to The Information, Meta and Microsoft are both actively reducing their internal reliance on Anthropic's tech as they seek to bolster the use of their own internal AI tools.

• The report found that Microsoft expected to spend at least $1 billion this year on Anthropic's tools internally, but that estimate has been cut by more than a third.
• Meta, meanwhile, reportedly dropped its Claude Code seats from 60,000 to roughly 30,000, with the reduction attributed to two factors: its spring workforce reduction of roughly 8,000 employees and its push to use internal tools instead.

Anthropic did not respond to The Deep View's request for comment in time for the publication of this story.

While the Pentagon and the tech giants have turned away from Anthropic for starkly different reasons, neither are particularly auspicious signs ahead of Anthropic's blockbuster IPO. According to Bloomberg, the AI lab is targeting a public market debut before the end of the year, and could go public as soon as the week of Nov. 9.

Anthropic is expected to debut at an eye-popping valuation of $2 trillion. Though the company lost $42 billion in 2025, according to its IPO prospectus reported by Reuters, The Information reported in August that its second quarter revenue this year was 14 times that of the same quarter the previous year, making it profitable from an adjusted operating income basis. However, keeping up with demand is going to be a massive expense, as it intends to spend $518 billion on cloud and computing infrastructure in the coming years, Reuters reported.

These reports come at a time when enterprises are grappling with rising AI spend and challenging conversations around ROI. Largely, the tokenmaxxing trend that overtook the industry earlier this year has run out of steam in most places. It's a trend that both Anthropic and OpenAI have clearly noticed as they attempt to undercut one another on prices for their frontier models.

Our Deeper View

The major AI labs' real rivalry isn't with one another, despite how they make it seem in the media. Rather, the real competition is with the increasingly attractive and affordable offerings coming from open models and as well as the innovations coming out of neoclouds that are innovating with more efficiency-focused architectures. And because switching between model providers is often expensive and cumbersome for big enterprises, once these companies wean off Anthropic or OpenAI, it's unlikely that they'll be easily persuaded to come back. Additionally, another factor potentially driving the shift away from major model providers is controllability. Major enterprises like Meta and Microsoft are very intent on deeply integrating AI throughout their processes, and trusting that data and context to an outside source–especially a competitor–is unlikely to be a long-term solution. Plus, along with the controllability benefits, these companies stand to save money by using their own internal tools for a large majority of tasks, reserving frontier intelligence for larger jobs. The question, however, is what this means for the two leading frontier labs. As the push towards efficiency and privacy has been shaking out for months while the AI leaders prepare for their record-breaking public market debuts, will they be to convince investors that they have a solid long-term growth story?