Trump Orders Federal Agencies to Phase Out Anthropic AI Over Pentagon Dispute

Former President Donald Trump has ordered all US federal agencies to phase out AI technology from ","ai company"], following a dispute with the Pentagon over military use. Anthropic CEO Dario Amodei refused to comply over ethical concerns. Defense Secretary Pete Hegseth labeled the company a supply-chain risk, while OpenAI reached a separate agreement with the Pentagon to deploy its AI safely. The administration set a six-month phase-out period and threatened legal consequences if Anthropic does not comply.

Former President Donald Trump has issued a sweeping directive ordering all federal agencies in the United States to phase out the use of artificial intelligence technology supplied by Anthropic, escalating a public dispute between the firm and the Pentagon. The directive comes amid an ongoing standoff in which the Pentagon had issued a firm deadline to Anthropic, insisting that the company permit unrestricted military use of its AI systems or face potential consequences.
Anthropic, co-founded by CEO Dario Amodei, has resisted these demands, citing ethical concerns. The company had previously requested assurances that its AI would not be used for fully autonomous weapons or for mass domestic surveillance. In response to the Pentagon ultimatum, Amodei stated that Anthropic “cannot in good conscience accede” to the Defense Department’s requests, underscoring the company’s commitment to safety and ethical boundaries. Pentagon officials have repeatedly said they do not intend to use the AI technology in ways that violate these principles.
The Trump administration’s move has drawn sharp criticism from Democrats and civil society observers. Senator Mark Warner, the senior Democrat on the Senate Intelligence Committee, warned that the directive raises “serious concerns about whether national security decisions are being driven by careful analysis or political considerations.” Anthropic currently holds a $200 million (€169 million) contract with the Pentagon, highlighting the high stakes involved for both the government and the company. Pentagon spokesman Sean Parnell stated that the agency intends to use Anthropic’s models “for all lawful purposes,” though he did not provide specifics on operational plans.
Defense Department Secretary Pete Hegseth condemned Anthropic publicly, labeling the company’s actions as “a master class in arrogance and betrayal” and declaring it a “supply-chain risk.” He further stated that “no contractor, supplier, or partner that does business with the United States military may conduct any commercial activity with Anthropic.” The Defense Department’s designation of Anthropic as a supply-chain risk signals a strict policy of isolation, effectively barring any U.S. military-related contractors from associating with the AI firm. Anthropic responded sharply to these measures, describing them as “intimidation” and pledging to challenge the designation in court.
In a parallel development, Sam Altman, CEO of OpenAI—the company behind ChatGPT—announced that his firm had successfully reached an agreement with the Pentagon to deploy its AI models on the Department of War’s classified network. Altman emphasized that all safety principles, including prohibitions on domestic mass surveillance and ensuring human responsibility for the use of force, were fully respected in the agreement. He noted that the Pentagon’s compliance with these safety standards contrasts with the dispute involving Anthropic.
The Trump administration has stipulated a six-month period for the Department of Defense and other federal agencies to phase out Anthropic technology. In a post on Truth Social, Trump wrote, “I am directing EVERY Federal Agency in the United States Government to IMMEDIATELY CEASE all use of Anthropic's technology. We don’t need it, we don’t want it, and will not do business with them again!” He further warned that the “Full Power of the Presidency” would be used to enforce compliance, with “major civil and criminal consequences” for failure to cooperate.
This confrontation highlights the growing tensions between government agencies seeking to leverage artificial intelligence for national security purposes and private AI firms that prioritize ethical safeguards and limitations. The situation also underscores the political and strategic complexities of regulating AI technologies that may have both civilian and military applications, and it has drawn significant attention from lawmakers, industry leaders, and the public alike.