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President Donald Trump said Friday that he is banning all federal agencies from using the services of artificial intelligence company Anthropic, dramatically escalating a public dispute between the White House, the Pentagon and one of the nation’s leading AI developers.
“I am directing EVERY Federal Agency in the United States Government to IMMEDIATELY CEASE all use of Anthropic’s technology,” Trump wrote in a post on Truth Social. “We don’t need it, we don’t want it, and will not do business with them again!”
Shortly afterward, Defense Secretary Pete Hegseth announced on X that he would direct the Department of Defense to formally designate Anthropic a “Supply-Chain Risk to National Security.”
Such designations are typically reserved for foreign adversaries and would prohibit military contractors and suppliers from doing business with the company. Hegseth and Trump said federal agencies would be given six months to phase out existing contracts.
Dispute over military use of AI
The move follows months of intensifying friction between Anthropic and the Pentagon over how the military can deploy the company’s AI systems.
Anthropic, led by CEO Dario Amodei, has publicly stated it will not allow its models to be used for mass domestic surveillance or fully autonomous lethal weapons. Pentagon officials have argued that AI systems provided to the military must be available for “any lawful use.”
“I believe deeply in the existential importance of using AI to defend the United States and other democracies,” Amodei wrote in a statement Thursday night. However, he said using such systems for domestic mass surveillance is “incompatible with democratic values” and that current frontier AI is “not reliable enough to power fully autonomous weapons.”
Anthropic did not immediately respond to requests for comment Friday.
Pentagon officials escalate rhetoric
The dispute spilled into public view this week as senior defense officials sharply criticized Anthropic’s leadership.
Undersecretary of Defense Emil Michael wrote on X late Thursday that Amodei “is a liar and has a God-complex,” accusing him of attempting to control military operations at the expense of national security.
Earlier, Pentagon chief spokesperson Sean Parnell said the department’s request to use Anthropic’s AI for all lawful purposes was “simple, common sense” and warned that restrictions could jeopardize military operations.
Anthropic currently holds a Pentagon contract valued at up to $200 million to support “responsible AI” initiatives and works with Palantir to deploy AI tools on classified defense and intelligence networks.
Lawmakers urge restraint
Democratic lawmakers warned Friday that the administration’s actions could have far-reaching consequences for the U.S. technology sector and national security.
In a letter to Hegseth, Sens. Ed Markey and Chris Van Hollen said the Pentagon’s threats against Anthropic represented “a chilling abuse of government power.”
Rep. George Whitesides said in a separate letter that pressuring companies to weaken safety policies on an accelerated timeline could lead to AI deployment “without sufficient guardrails.”
Industry-wide implications
Unlike traditional defense technologies, today’s most advanced AI systems are largely developed by private companies, forcing the Pentagon to negotiate usage terms rather than dictate them.
Until this week, Anthropic was the only major AI firm cleared to operate on classified U.S. government networks.
In a memo to employees obtained by NBC News, Sam Altman, CEO of OpenAI, said his company would take a similar position if faced with the same demands.
“We have long believed that AI should not be used for mass surveillance or autonomous lethal weapons,” Altman wrote, adding that humans must remain involved in high-stakes decisions.
Altman said the dispute now extends beyond Anthropic. “This is an issue for the whole industry,” he wrote.
Other major AI firms, including Google, Meta, and xAI, did not respond to requests for comment.
