Anthropic Bets on Bengaluru: India Becomes AI Hub as Claude Hits Pentagon Roadblocks
Bengaluru/Washington, February 19, 2026 — In a move that signals a "pivot to the East," Anthropic CEO Dario Amodei officially inaugurated the company’s new office in Bengaluru this week. The expansion comes as India solidifies its position as the world's second-largest market for Claude, trailing only the United States.
However, the celebratory mood in India stands in stark contrast to the growing friction in Washington, D.C., where Anthropic’s commitment to "AI Safety" has triggered a potential split with the U.S. Department of Defense.
1. The Bengaluru Bet: "A Country of Geniuses in a Data Center"
Speaking at the India AI Impact Summit 2026 in New Delhi, Dario Amodei described India’s role as "absolutely central" to the global AI race.
Key Highlights of the India Expansion:
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New Leadership: Anthropic has hired Irina Ghose (formerly of Microsoft) as Managing Director for India to lead its second-largest global operations base.
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Staggering Growth: Anthropic’s revenue run-rate in India has doubled since October 2025.
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Technical Intensity: Interestingly, 50% of Claude’s usage in India is for high-level coding and mathematical tasks, rather than simple chat, highlighting the country's deep developer talent.
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Strategic Partnerships:
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Infosys: Collaborating to build AI agents for regulated industries like telecom.
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Air India: Utilizing Claude Code to modernize aviation software.
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Public Sector: Partnering with nonprofits like Pratham to deploy "Anytime Testing Machines" for students in underserved areas.
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2. The US Military Scrutiny: A "Supply Chain Risk"?
While Anthropic scales in India, it is facing a "make or break" moment with the Pentagon. Reports suggest that U.S. Defense Secretary Pete Hegseth is considering designating Anthropic as a "supply chain risk" and potentially terminating the military's relationship with the company.
The Conflict: Safety vs. Lethality
The dispute centers on Anthropic’s rigid Acceptable Use Policy.
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The Incident: Reports emerged that Claude was used in a January 2026 raid to capture former Venezuelan leader Nicolás Maduro (facilitated via Palantir).
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The Standoff: The Pentagon wants "broad operational flexibility" for AI in battlefield operations and weapons development.
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The Stand: Anthropic has refused to lift its "hard limits" on fully autonomous weapons and mass surveillance.
"Technology is outpacing policy. Anthropic’s insistence on safety is clashing with the military's need for operational autonomy," says former Interior Dept CISO Louis Eichenbaum.
