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In an escalation of the conflict between Silicon Valley and the White House, President Donald Trump has ordered all federal agencies to stop using technology from AI developer Anthropic immediately.
The directive, announced Friday on Truth Social, effectively blacklists the $380 billion firm and designates it a “supply chain risk” – a label historically reserved for foreign companies such as China’s Huawei.
The order marks the collapse of months of negotiations between the Pentagon and Anthropic CEO Dario Amodei. The central sticking point was Amodei’s refusal to grant the military unrestricted access to “Claude,” the company’s flagship AI model.
Anthropic insisted on two “red lines”: that its technology not be used for mass domestic surveillance of Americans or to power fully autonomous weapons systems capable of lethal force without human oversight.
“Woke AI” vs. National Security
President Trump and Defense Secretary Pete Hegseth have characterized the company’s stance as an act of “corporate virtue-signaling.” Trump berated the firm as “left-wing nut jobs” who attempted to “strong-arm the Department of War.”
Hegseth further argued that Anthropic’s restrictions were “putting American lives at risk” by potentially limiting the military’s ability to use AI for defensive measures, such as intercepting hypersonic missiles.
“We don’t need it, we don’t want it, and will not do business with them again!” Trump wrote, warning of major civil and criminal consequences if the company fails to cooperate during a mandated six-month phase-out period.
Legal battle ahead
Anthropic has vowed to fight the “supply chain risk” designation in court, calling it “legally unsound” and a dangerous precedent for any American company. The firm argues that the Secretary of Defense lacks the statutory authority to bar private contractors from using Anthropic for their own non-government business.
While Anthropic faces exile, its rivals have moved to fill the vacuum. OpenAI CEO Sam Altman announced that his firm reached a deal with the Pentagon to deploy its models on classified networks, claiming the agreement respects safety principles while allowing “all lawful use.”
The fallout has already triggered internal dissent across the industry. Hundreds of employees at Google and OpenAI signed an open letter backing Anthropic, warning that the government’s tactics could force a choice between ethical safety standards and national survival.
As both sides prepare for a landmark constitutional battle, the future of how the US government deploys artificial intelligence hangs in the balance.
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