President Donald Trump ordered all U.S. Federal agencies to cease using technology developed by Anthropic, an artificial intelligence company, following a dispute over the military’s potential use of the technology, the White House announced Friday.
The directive came after Anthropic refused demands from the Pentagon to remove safeguards preventing its AI tools from being used in mass surveillance of American citizens or to power fully autonomous weapon systems, as part of a contract potentially worth up to $200 million. Defense Secretary Pete Hegseth subsequently moved to designate Anthropic a national security “supply chain risk,” effectively barring defense contractors from doing business with the firm.
“The Leftwing nut jobs at Anthropic have made a DISASTROUS MISTAKE trying to STRONG-ARM the Department of War, and force them to obey their Terms of Service instead of our Constitution,” Trump wrote in a post on Truth Social. “I am directing EVERY Federal Agency in the United States Government to IMMEDIATELY CEASE all use of Anthropic’s technology.”
Anthropic CEO Dario Amodei had made clear the company’s refusal to drop its two key demands: preventing the use of its AI for fully autonomous weapons and prohibiting mass domestic surveillance. The company stated it would “challenge any supply chain risk designation in court,” according to a statement released Friday.
Hours after Trump’s announcement, rival AI company OpenAI announced it had reached a deal with the Defense Department to provide its technology for classified networks. This move followed a period of public disagreement between Hegseth and Amodei, with the Pentagon insisting on “any lawful use” of Anthropic’s tools.
The administration’s decision to ban Anthropic and designate it a supply chain risk is an unprecedented step, marking the first time a U.S. Company has publicly received such a designation. Hegseth stated that the designation would allow for a “seamless transition” to another AI provider, with Anthropic continuing to provide services for up to six months.
Anthropic reported it had not received direct communication from the Pentagon or the White House regarding the status of negotiations as of Friday evening. The company expressed concern that the supply chain risk designation would “set a dangerous precedent for any American company that negotiates with the government.”
The dispute highlights growing tensions between the government and AI developers regarding the ethical and security implications of artificial intelligence, particularly in military applications. The Economist reported on February 27th that the President had “walloped” Anthropic, characterizing its representatives as “leftwing nut jobs.”
According to NPR reporting, the Pentagon is seeking to integrate AI into classified networks, and the deal with OpenAI represents a significant step in that direction. The BBC reported that Trump’s directive was issued after days of public and private exchanges between Amodei and Hegseth.
