President Donald Trump has ordered all US federal agencies to stop using artificial intelligence technology from the company Anthropic. Agencies have been given six months to phase out the company’s products.
The decision follows a public dispute between Anthropic and the Pentagon. The Defense Department had asked the San Francisco-based company to allow its AI systems to be used by the military without restrictions. Officials warned there would be consequences if the company refused.
Anthropic pushed back. CEO Dario Amodei said the company could not agree to the government’s demands. Anthropic wanted guarantees that its AI would not be used for fully autonomous weapons or for large-scale domestic surveillance. The Pentagon said it had no plans to use the technology that way.
After the disagreement, Trump directed all federal agencies to immediately stop using Anthropic’s tools. In a post on Truth Social, he said the government would no longer do business with the company. He also warned of possible civil and criminal penalties if Anthropic did not cooperate during the phaseout period.
Defense Secretary Pete Hegseth strongly criticized the company, calling its actions a “betrayal.” He also labeled Anthropic a supply-chain risk, meaning US military contractors may no longer be allowed to work with the firm.
Anthropic said it would challenge that designation in court and accused the Pentagon of trying to intimidate the company.
Meanwhile, OpenAI CEO Sam Altman announced that his company had reached an agreement with the Pentagon to provide AI systems for use on its classified network. Altman said the agreement follows safety principles, including bans on mass domestic surveillance and fully autonomous weapons without human control.
Anthropic currently holds a $200 million contract with the Defense Department.
Democratic lawmakers criticized the Trump administration’s handling of the dispute. Senator Mark Warner said the move raises concerns about whether national security decisions are being made carefully or for political reasons.
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