Big Short's Michael Burry Says Pentagon's Claude Phaseout Shows Government Can't Rely on Palantir Alone

[https://www.ibtimes.co.uk/anthropics-claude-ai-tops-us-app-downloads-1782503](https://www.ibtimes.co.uk/anthropics-claude-ai-tops-us-app-downloads-1782503)

Anthropic's Claude AI secured the top position in US app downloads over the weekend, surpassing rivals like OpenAI's ChatGPT, after the Pentagon blacklisted the AI research and safety company for refusing to ease safeguards for military use of its AI model.

The US government uses AI technology like Claude and those from Google and OpenAI through a secure framework provided by AI tech leader Palantir Technologies. On Friday, the US government directed defence contractors to stop working with Anthropic.

However, the government offered a six-month phaseout period of Claude AI despite saying the technology poses a supply-chain risk. Big Short's Michael Burry, who made a fortune betting against the housing market in the 2008 global financial crash, said the US decision to phase out Claude AI over six months shows how important the technology has become for the government.

Palantir provides AI services to government agencies by integrating with various models. The US government does not use leading AI models directly for sensitive works, but embeds them into secure data frameworks such as Palantir's products, like Gotham, Foundry, and AIP, which serve as the substrate for AI integration. Note that Claude is deployed inside Palantir via Amazon Web Services' GovCloud platform.

However, Burry believes that the US government scrapping its partnership with Claude AI shows that relying solely on Palantir paired with AI models from alternative providers is not a good enough substitute.