US Government Bars Anthropic From Federal Agencies and Contractors

President Donald Trump ordered US government agencies to cease using Anthropic PBC's products, ending a dispute between the artificial intelligence behemoth

Quick overview

  • President Trump ordered US agencies to stop using Anthropic PBC's products, resolving a dispute over technology safeguards.
  • The Pentagon classified Anthropic PBC as a supply-chain risk, leading to a prohibition on business dealings with its contractors.
  • Defense Secretary Pete Hegseth gave Anthropic six months to transition AI services to another supplier and stated that the decision is final.
  • Anthropic plans to contest the supply chain risk designation in court, emphasizing its commitment to ethical AI practices.

President Donald Trump ordered US government agencies to cease using Anthropic PBC’s products, ending a dispute between the artificial intelligence behemoth and defense officials over technology safeguards

 

The Pentagon then deemed Anthropic PBC a supply-chain risk. Defense Secretary Pete Hegseth directed the Pentagon to prohibit any business dealings with Anthropic by its contractors and their associates.

Hegseth gave Anthropic six months to transfer AI services to another supplier in a post on X. Hegseth wrote, “The ideological caprices of Big Tech will never subjugate America’s warfighters.” “This choice is final.”

Hegseth had given the business until Friday to give the Pentagon permission to use the Claude chatbot for any legitimate purpose, free from Anthropic’s usage restrictions.

The company has demanded that Claude not be employed in fully autonomous weapons operations or for widespread surveillance against Americans. Anthropic said in a statement on Friday that it has not heard directly from the government regarding the status of negotiations and that it will contest any designation of supply chain risk in court.

Since its establishment, Anthropic has positioned itself as a business committed to the ethical application of AI to prevent disastrous consequences from the technology. Chief Executive Officer Dario Amodei and Hegseth, who has vowed to eradicate “woke” practices at the expansive agency he oversees, were in a high-stakes conflict over Amodei’s stance.

ABOUT THE AUTHOR See More
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks the financial markets with over 15 years of working experience in investment trading.

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