US President Donald Trump on Friday ordered federal agencies to stop using AI tools from Anthropic, while the Pentagon plans to label the startup a supply-chain risk—a major setback for the company after disputes over AI safeguards. Trump announced a six-month phase-out for the Department of Defense and other agencies, warning that failure to comply could trigger “major civil and criminal consequences.”
The unprecedented action signals a sharp US rebuke of a leading AI firm critical to national security. Backed by investors including Google and Amazon, Anthropic could face a de facto blacklist, limiting both government and private-sector opportunities.
Anthropic said it plans to legally challenge any risk designation, arguing that the move sets a dangerous precedent. “No amount of intimidation or punishment…will change our position on mass domestic surveillance or fully autonomous weapons,” the company said.
Meanwhile, rival OpenAI, backed by Microsoft and Amazon, announced its own deal with the Pentagon’s classified network, emphasizing human oversight over weapons and safeguards against mass surveillance.
Pentagon officials cited disagreements with Anthropic over military use limits, noting that US law—not corporate policy—dictates defense decisions. Experts warn that the supply-chain designation could severely disrupt Anthropic’s government contracts, comparing it to “nuclear war” for the company.
Similar measures were previously taken against Chinese tech giant Huawei, restricting its use in defense contracts. Anthropic, which has been competing to supply AI to government and business clients ahead of a potential IPO, now faces what some analysts describe as the strictest domestic AI regulation in US history.
Concerns over “killer robots” and autonomous weapons have long strained relations between tech firms and the Pentagon. Yet, as AI increasingly intersects with military operations, debates over ethical limits and oversight continue to intensify.
Anthropic’s AI has been integrated into intelligence and armed services operations, marking it as a pioneer in working with classified data through cloud partnerships, including Amazon.