The Trump administration has taken drastic action against artificial intelligence firm Anthropic, ordering a federal ban on its technology and designating it a national security risk following a high-stakes ethical dispute with the Pentagon. The conflict centers on the military's desire for unrestricted use of Anthropic's AI models, including potential applications for mass domestic surveillance and fully autonomous weapons, which the company's ethical guidelines explicitly prohibit.
President Donald Trump mandated all federal agencies to cease using Anthropic's technology "immediately," characterizing the firm's stance as a threat to U.S. troops and national security. In a post on Truth Social, Trump accused "Leftwing extremists at Anthropic" of making a "DISASTROUS MISTAKE by trying to STRONG-ARM the Department of War." He asserted, "WE will determine our Country's future – NOT some out-of-control, Radical Left AI firm."
Defense Secretary Pete Hegseth formalized the retaliation, announcing the Department of War is permanently severing ties with Anthropic and designating it a "Supply-Chain Risk to National Security." Effective immediately, Hegseth's directive prohibits any U.S. military contractor, supplier, or partner from conducting commercial activity with Anthropic. A six-month transition window was granted for the Pentagon to find alternative solutions.
The rupture follows the collapse of negotiations over a $200 million contract signed in July. Anthropic had sought written assurances its Claude AI would not be used for fully autonomous weapons or mass domestic surveillance of Americans. The Pentagon "strongly resisted" this request and set a deadline for Anthropic to agree to allow use for "all lawful purposes," which passed without agreement.
Anthropic CEO Dario Amodei stated the company "cannot comply with the Defense Department's request" as it was "against Anthropic's conscience." In a formal response, the company called the supply-chain risk designation "unprecedented," noting it is typically reserved for U.S. adversaries. Anthropic vowed to challenge the designation in court, arguing Secretary Hegseth lacks the statutory authority for a broad ban and that restrictions should only apply to specific Department of War contract work.
The company highlighted its history of supporting U.S. national security, including being the first frontier AI company to deploy models in classified government networks. The standoff has sparked concerns that major tech investors like Nvidia, Amazon, and Google may have to divest from Anthropic, potentially chilling investment in the American AI sector.
