Key Highlights
- US President Donald Trump orders all federal agencies to stop using technology from AI developer Anthropic.
- Anthropic is labeled a “supply chain risk” by the Department of Defense due to its refusal to grant military unfettered access to its tools.
- The company challenges any supply chain risk designation in court and claims it would be legally unsound and set a dangerous precedent.
- Anthropic’s tools will be phased out of all government work over the next six months, according to Trump’s directive.
Trump Orders Government Ban on Anthropic AI Tools
US President Donald Trump has issued a firm directive: every federal agency must immediately stop using technology from AI developer Anthropic. In a Truth Social post, he declared, “We don’t need it, we don’t want it, and will not do business with them again!”
Anthropic’s Refusal and the Pentagon’s Ultimatum
Anthropic’s stance against the US military has been at the heart of this conflict. The company refused to give the Department of Defense unfettered access to its AI tools, citing concerns over potential uses in “mass surveillance” and “fully autonomous weapons.” In response, Pentagon Secretary Pete Hegseth deemed Anthropic a “supply chain risk,” which is a first for any US company.
White House’s Stance and Corporate Impact
The White House’s position is clear: Anthropic will be labeled as a supply chain risk. This designation could affect companies that also contract with the military, potentially forcing them to stop using Anthropic for work being done on behalf of the Pentagon.
Industry Context and Broader Implications
The dispute highlights the growing tension between tech companies and government agencies over the use and regulation of AI. OpenAI CEO Sam Altman backed Anthropic, stating that any company negotiating with the military should reject uses “unlawful or unsuited to cloud deployments.” This support underscores the broader industry debate on AI ethics and security.
Anthropic, worth $380 billion as of its most recent valuation, is no stranger to controversy. Its tools have been in use by the US government and military since 2024 and were the first advanced AI company to deploy its tools for classified work. The Pentagon’s threats are seen by some as flimsy, given Anthropic’s strong financial position.
Phased Out by Trump
In a swift move, Trump ordered the phased-out use of Anthropic over the next six months. He berated the company on Truth Social, demanding they “get their act together” or face severe consequences. The directive marks a significant shift in how the government handles AI technology from private companies.
You might think this is new, but it’s not.
Tech and politics have been at odds for years over data privacy and surveillance. This fight just brings that tension to light in an AI context.
