Trump has ordered government agencies to stop using Anthropic AI tools.

Trump Orders Federal Agencies to Cease Using Anthropic AI Amidst Heated Dispute Over Technology Use

In a dramatic escalation of a burgeoning conflict over the deployment of artificial intelligence, U.S. President Donald Trump has issued a sweeping directive mandating that all federal agencies immediately halt their use of technologies developed by the AI firm Anthropic. The order, delivered via a post on Trump’s Truth Social platform, unequivocally stated, "We don’t need it, we don’t want it, and will not do business with them again!" This decisive action follows a contentious dispute between Anthropic and the White House, primarily centered on the company’s refusal to grant the U.S. military unfettered access to its advanced AI tools. This stance led U.S. Defense Secretary Pete Hegseth to designate Anthropic as a "supply chain risk," a label that, if formally applied, would mark the first instance of such a designation for a U.S. technology company. Anthropic has publicly stated its intent to challenge any such designation in court, asserting that it is both legally unsound and would establish a dangerous precedent for American businesses engaging with the government.

The president’s directive arrives after a period of intense public and private exchanges between Anthropic’s CEO, Dario Amodei, and Secretary Hegseth. Concerns had been mounting within Anthropic over the potential for its AI tools, such as the widely recognized Claude chatbot, to be employed by the government in ways the company deemed problematic, specifically citing anxieties around "mass surveillance" and the development of "fully autonomous weapons." Conversely, Hegseth and the Pentagon have maintained that Anthropic should agree to "any lawful use" of its technologies. The dispute was further amplified on social media, with Hegseth announcing on X (formerly Twitter) that Anthropic would be "immediately" labeled a supply chain risk, thereby prohibiting any entity working with the military from engaging in "any commercial activity with Anthropic."

As of Friday evening, Anthropic reported that it had received no direct communication from the White House or the military regarding the status of their ongoing negotiations. Despite this, the company reiterated its position, stating that a supply chain risk designation would "both be legally unsound and set a dangerous precedent for any American company that negotiates with the government." In a firm declaration, Anthropic added, "No amount of intimidation or punishment from the Department of War will change our position on mass domestic surveillance or fully autonomous weapons," referencing the colloquial term President Trump uses for the Department of Defense. Trump’s pronouncement indicated that Anthropic’s tools would be phased out of all government operations over the next six months. For Anthropic’s other clientele, the primary impact is anticipated to be on companies that also hold contracts with the military, potentially requiring them to discontinue the use of Anthropic’s services for work conducted on behalf of the Department of Defense.

Prior to Trump’s decisive order, Anthropic had expressed its willingness to facilitate a smooth transition to alternative providers should the Department of Defense opt to cease using its tools. However, President Trump took a more confrontational tone on Truth Social, warning Anthropic that it "better get their act together, and be helpful during this phase out period, or I will use the Full Power of the Presidency to make them comply, with major civil and criminal consequences to follow." Anthropic’s engagement with the U.S. government and military began in 2024, positioning it as the first advanced AI company to deploy its tools within government agencies handling classified information.

Notably, Anthropic’s stance against the government’s demands had garnered support from other industry leaders. Sam Altman, CEO of rival AI firm OpenAI, voiced his solidarity with Amodei, communicating to his staff that OpenAI shares similar "red lines" concerning the application of their products. In a memo reviewed by the BBC, Altman indicated that any OpenAI contracts involving the military would also explicitly reject uses deemed "unlawful or unsuited to cloud deployments, such as domestic surveillance and autonomous offensive weapons." Altman later confirmed on X that OpenAI had indeed reached an agreement with the "Department of War" to utilize its AI models on classified cloud networks. Amodei himself is a significant figure in the tech landscape, having previously been an early employee at OpenAI before departing with a group of colleagues to establish Anthropic, reportedly due to disagreements with Altman. The two startups now operate as direct competitors, vying for users and corporate clients with their respective offerings of AI chatbots, agents, and other advanced tools.

Altman’s memo further elaborated on his perspective: "I do not fully understand how things got here; I do not know why Anthropic did their deal with the Pentagon and Palantir in the way they originally did it. But regardless of how we got here, this is no longer just an issue between Anthropic and the [Department of War] DoW; this is an issue for the whole industry and it is important to clarify our stance." The tension between Anthropic and the Department of Defense reached a critical juncture on Tuesday when Hegseth summoned Amodei to Washington D.C. for a meeting. This meeting culminated in two stark ultimatums: if Anthropic refused to grant the department unrestricted access to its tools, Hegseth declared he would invoke the Defense Production Act, empowering the government to utilize Anthropic’s products as it deemed necessary, and simultaneously designate the company as a "supply chain risk." By Thursday, Amodei had publicly stated his preference to cease collaboration with the Pentagon rather than capitulate to such demands.

A former Department of Defense official, who requested anonymity, offered insight into the situation, suggesting that Anthropic appeared to hold the stronger position. "This is great PR for them and they simply do not need the money," the official remarked, highlighting Anthropic’s substantial market valuation. Anthropic’s existing contract with the Pentagon is valued at $200 million (£149 million). The company’s most recent valuation, earlier this month, placed its worth at an impressive $380 billion, a figure derived from its current revenue streams and projected future earnings. The former official further criticized the defense department’s rationale for threatening Anthropic with the invocation of the Defense Production Act and the supply chain risk designation, describing the basis as "extremely flimsy."