Trump Orders Ban on Anthropic AI in U.S. Agencies

Trump on Friday directed all federal agencies to immediately halt the use of technology that is developed by AI firm Anthropic. The decision has sharply escalated a dispute between the government and one of the country’s most prominent artificial intelligence companies. Writing on Truth Social, Trump declared that, “We don’t need it, we don’t want it, and will not do business with them again!”

The Image shows U.S. President Donald Trump alongside Dario Amodei, CEO of Anthropic, in a split-screen news-style graphic about a federal ban on Anthropic AI tools and policy decisions.

The order came when Anthropic refused to grant the U.S. military unrestricted access to its AI systems, including its Claude chatbot. Consequently, U.S. Defense Secretary Pete Hegseth labeled the company a “supply chain risk”. This move suggests that military contractors could be barred from conducting any commercial activity with the firm.

Anthropic responded by stating that, it would challenge any such designation in court. Moreover, the company said that the label would be “legally unsound and set a dangerous precedent for any American company that negotiates with the government”.

Anthropic Raises Surveillance Concerns Amid Pentagon AI Dispute

Tensions intensified after Anthropic raised concerns that its systems might be used for “mass surveillance” or “fully autonomous weapons”. However, Pentagon officials have insisted that the company agree to “any lawful use” of its technology.

Although negotiations had continued privately between Anthropic’s chief executive, Dario Amodei, and defense officials. Trump’s directive requires agencies to phase out the company’s tools within six months. In addition, contractors working with the Department of Defense may now need to discontinue Anthropic software for military-related projects.

Despite the public statements, Anthropic said that it had not received any formal communication from the White House regarding the status of discussions. Nevertheless, the company added that, “No amount of intimidation or punishment from the Department of War will change our position on mass domestic surveillance or fully autonomous weapons”.

Tech Industry Backs Anthropic as AI Defense Contract Dispute Escalates

Meanwhile, support for Anthropic’s stance has emerged within the technology sector. Sam Altman expressed solidarity with Dario Amodei in an internal memo. He said that OpenAI also shares similar “red lines” that raise concerns regarding military applications of AI.

Altman later confirmed that OpenAI had secured an agreement with the Defense Department to deploy its models on classified cloud networks. Nevertheless, it maintained its refusal to support unlawful or unsuitable uses, such as domestic surveillance and autonomous offensive weapons.

Anthropic, which has worked with federal agencies since 2024 under a $200 million Pentagon contract, now faces the prospect of losing government partnerships. Even so, the company recently achieved a valuation of $380 billion had suggested a limited financial exposure from the standoff. As the confrontation deepens, officials warn that the dispute could shape future rules that govern how emerging AI technologies interact with national security priorities.

Web Resources on U.S. Government AI Policy and Defense Technology Use

1. Reuters.com: Trump directs US agencies to toss Anthropic’s AI
2. NYTimes.com: Trump Orders Government to Stop Using Anthropic
3. APNews: Trump orders US agencies to stop using Anthropic technology
4. WashingtonPost.com: Pentagon declares Anthropic a threat to national security

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