Trump Orders U.S. Federal Agencies to Phase Out Anthropic AI Products Amid Pentagon Dispute
Title:U.S. President Donald Trump has directed all federal agencies to terminate the use of AI products from Anthropic, granting a six-month transitional period to wind down existing contracts. The move marks a direct escalation in the dispute between the company and the U.S. Department of Defense over the regulation of advanced AI technology in military applications.
The decision follows Anthropic’s insistence on strict restrictions for its “Claude” model, refusing its deployment in domestic mass surveillance applications or integration into fully autonomous weapon systems. In contrast, the Department of Defense, which oversees Pentagon operations, sought broader usage within legal frameworks, arguing that the company’s limitations hinder national security requirements.
The presidential directive delivers a significant blow to Anthropic, valued at approximately $380 billion, which had secured contracts with the U.S. military totaling nearly $200 million. The decision also poses technical challenges for federal agencies relying on the company’s solutions within secure cloud environments, particularly the widely used “Claude Gov” tool in defense operations.
The move is expected to reverberate across Silicon Valley amid rising debate over the limits of collaboration between tech firms and the military. Previously, employees at Amazon and Microsoft had called for restrictions on unconditional military use of AI technologies.
Sam Altman also expressed similar reservations, emphasizing that any collaboration with the Department of Defense should follow clear guidelines balancing national security needs with ethical considerations.
Despite the escalation, Department of Defense officials have left room for ongoing negotiations until the end of the six-month transition, leaving open the possibility of a settlement before the full implementation of the phase-out.