US President Donald Trump said he will direct every federal agency to immediately stop using technology from AI developer Anthropic, escalating a dispute over the company’s refusal to grant the US military unrestricted access to its tools.
“We don’t need it, we don’t want it, and will not do business with them again!” Trump wrote in a post on Truth Social on Friday.
Dispute Over Military Access
Anthropic has been in a standoff with the White House after declining demands that it agree to give the US military unfettered access to its AI systems. The company raised concerns in recent months that the government could deploy its tools, including Claude, for what it described as “mass surveillance” and “fully autonomous weapons”.
US Defence Secretary Pete Hegseth responded by saying he had deemed Anthropic a “supply chain risk”. Such a designation would make Anthropic the first US company to publicly receive that label.
Hegseth and the Pentagon have insisted that Anthropic agree to “any lawful use” of its tools and technology.
Supply Chain Risk Designation
Hegseth announced on X that Anthropic would be “immediately” designated a supply chain risk, which would prohibit any company working with the military from engaging in “any commercial activity with Anthropic”.
Anthropic said it would challenge any supply chain risk designation in court. On Friday evening, the company said it had yet to receive direct communication from the White House or the military regarding the status of negotiations.
The company stated that such a designation “would both be legally unsound and set a dangerous precedent for any American company that negotiates with the government”.
“No amount of intimidation or punishment from the Department of War will change our position on mass domestic surveillance or fully autonomous weapons,” Anthropic added.
The Department of War is a secondary name Trump has given to the defence department.
Phase-Out And Presidential Warning
Trump said Anthropic’s tools would be phased out of all government work over the next six months.
Before Trump’s statement, Anthropic had said that if the US Department of Defense chose to stop using its tools, it would “work to enable a smooth transition to another provider”.
On Truth Social, Trump criticized the company, writing that Anthropic “better get their act together, and be helpful during this phase out period, or I will use the Full Power of the Presidency to make them comply, with major civil and criminal consequences to follow”.
Impact On Contractors And Government Use
Anthropic said the only effect on its broader customer base would be for companies that also contract with the military. Those firms may need to stop using Anthropic tools for work conducted on behalf of the defence department.
Anthropic has been used by the US government and military since 2024. It was the first advanced AI company to have its tools deployed within government agencies conducting classified work.
Featured image credits: Wikimedia Commons
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