President Donald Trump on Friday ordered all US federal agencies to phase out use of AI technology from Anthropic, following a public dispute between the company and the Pentagon.
The directive came as the Pentagon approached a deadline it had set for Anthropic, urging the firm to allow unrestricted military use of its AI models or face consequences. Anthropic sought guarantees that its systems would not be used for fully autonomous weapons or for mass domestic surveillance; the Pentagon says it has no interest in such uses.
Anthropic CEO Dario Amodei rejected the Pentagon’s demands, saying his company “cannot in good conscience accede” to the ultimatum. The firm currently holds a $200 million (€169 million) contract with the Defense Department.
Democrats criticized the administration’s handling of the dispute. Senator Mark Warner of Virginia, the top Democrat on the Senate Intelligence Committee, said the move “raises serious concerns about whether national security decisions are being driven by careful analysis or political considerations.”
Pentagon spokesman Sean Parnell said the agency wants to “use Anthropic’s model for all lawful purposes,” but officials have not provided detailed public explanations of how the technology would be used. Defense Department Secretary Pete Hegseth posted on X that “Anthropic delivered a master class in arrogance and betrayal,” adding that “America’s warfighters will never be held hostage by the ideological whims of Big Tech.”
Hegseth later labeled Anthropic a “supply-chain risk,” declaring that “no contractor, supplier, or partner that does business with the United States military may conduct any commercial activity with Anthropic.” Anthropic responded by condemning what it called “intimidation” from the Pentagon and said it would “challenge any supply chain risk designation in court.”
Shortly afterward, OpenAI CEO Sam Altman announced his company had reached an agreement with the Pentagon to deploy its AI models on the department’s classified network. Altman said in a post on X that in all interactions “the DoW [Department of War] displayed a deep respect for safety and a desire to partner to achieve the best possible outcome.” He added that the two red lines Anthropic refused to accept—prohibitions on domestic mass surveillance and ensuring human responsibility for the use of force, including autonomous weapon systems—were raised and resolved in OpenAI’s deal, and are reflected in law and policy.
The Trump administration gave the Department of Defense and other agencies a six-month period to phase out Anthropic’s products. On Truth Social, Trump wrote: “I am directing EVERY Federal Agency in the United States Government to IMMEDIATELY CEASE all use of Anthropic’s technology. We don’t need it, we don’t want it, and will not do business with them again!” He also warned he would use “the Full Power of the Presidency to make them comply, with major civil and criminal consequences to follow” if Anthropic did not cooperate during the phaseout.
Edited by: Wesley Dockery