Trump Orders Federal Agencies to Halt Use of Anthropic AI Products Following Military Dispute

Stock News02-28 07:40

President Trump has directed all federal government agencies to cease using products from artificial intelligence company Anthropic, escalating a dispute between the AI firm and the Pentagon over restrictions on technology use. On Friday, Trump stated on social media that he has instructed "all federal agencies to immediately stop using Anthropic technology," warning that the company could face "significant civil and criminal consequences" if it does not cooperate with transition arrangements. He also announced that relevant agencies, including the Department of Defense, will have a six-month "transition period" to phase out Anthropic products.

The core of the controversy lies in the Pentagon's demands regarding the scope of AI model usage. U.S. Secretary of Defense had previously requested that the Department of Defense be allowed to use Anthropic's Claude chatbot "in any necessary manner" within the legal framework, unrestricted by the company's terms of service. Anthropic has maintained that its models must not be used for mass surveillance of U.S. citizens or fully autonomous weapon systems.

Since its founding, Anthropic has emphasized its commitment to "responsible AI," focusing on avoiding catastrophic risks from technology. This stance has brought its CEO into direct conflict with senior Pentagon officials. Recently, the Pentagon released an artificial intelligence strategy proposing the creation of an "AI-first" military and emphasizing the selection of models "unrestricted by usage policies."

Trump's move is expected to send shockwaves through the AI industry. Anthropic's previous contract with the military was valued at up to $200 million, and the company also provides services to civilian agencies such as the State Department. A full termination of cooperation would weaken the company's position in the federal market. Anthropic is currently valued at approximately $380 billion, with widespread expectations that it could launch an initial public offering as early as this year.

Notably, Anthropic was one of the few AI systems previously authorized to operate within the Pentagon's classified cloud environment, with its "Claude Gov" tool being widely used by some defense personnel. Complete exclusion from government systems could pose near-term challenges for national security and technological substitution.

Meanwhile, competitors are accelerating their efforts to capture government business. Musk's xAI has received approval to participate in classified projects, while OpenAI and Google's Gemini models are actively expanding into the federal market. OpenAI's CEO stated in an internal memo that the company is communicating with the Department of Defense to provide model services under certain restrictions.

Trump's decision may also provoke backlash in Silicon Valley. Employees from several tech companies, including Amazon and Microsoft, have previously urged management to reject the Pentagon's "unrestricted use" demands. On Thursday, Anthropic reaffirmed its position, stating: "These threats will not change our decision; we cannot in good conscience accept the relevant requirements."

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