Gate News reports that on March 7, a senior defense official confirmed that the U.S. Department of Defense has sent a formal letter to an AI company A, which had previously threatened to sue the Department over related designations. According to sources familiar with the matter, amid the ongoing expanding conflict between the U.S. and Iran, the technology of this AI company is being used by the Department of Defense to analyze collected data and images to assist military decision-making. In recent weeks, there have been disagreements over the use of the AI system in classified systems: the Department of Defense demands that the company's AI system be used for all legitimate purposes or face business termination; the AI company insists that its technology must not be used to monitor Americans or in conjunction with autonomous lethal weapons. After the deadline on Friday afternoon, Defense Secretary Pete Hegseth announced that the AI company has been designated as a "National Security Supply Chain Risk," a designation typically reserved for companies associated with the Chinese government, and stipulates that any contractors, suppliers, or partners with military business dealings are prohibited from engaging in commercial activities with the company. On the same day, AI Company B and AI Company C both signed confidential system technology supply agreements with the Department of Defense. AI Company B agreed to allow the Department of Defense to use its AI system for any "legitimate purposes" and to maintain security principles through technical safeguards. After criticism over the weekend, the company announced on Monday that it had amended the agreement to include provisions to prevent the technology from being used for large-scale surveillance of Americans.