President Donald Trump has ordered all federal agencies to stop using products from artificial intelligence company Anthropic. The directive, issued via a post on his Truth Social platform, comes after a public dispute between the company and the US Department of Defense regarding ethical restrictions on its technology.

The President mandated a six-month phase-out period for departments currently using Anthropic's services but stated the company is "no longer welcome as a federal contractor."

Core of the Dispute: AI Ethics for Warfare

The conflict stems from Anthropic's refusal to allow its AI models to be used for two specific military applications: mass domestic surveillance and fully autonomous weapons systems. Secretary of Defense Pete Hegseth deemed these restrictions "unduly restrictive."

In a public post last Thursday, Anthropic's CEO, Dario Amodei, stood firm on the company's position. "Our strong preference is to continue to serve the Department and our warfighters — with our two requested safeguards in place," Amodei wrote.

Trump's Directive and Potential Consequences

In his social media post, President Trump wrote, "We don’t need it, we don’t want it, and will not do business with them again." The order does not invoke the Defense Production Act or designate Anthropic as a supply chain risk.

However, the President urged the company to cooperate during the transition, warning of "major civil and criminal consequences" if it did not assist in the six-month phase-out. Amodei had previously committed to enabling "a smooth transition to another provider" to avoid disruption to military operations.

Context and Industry Impact

The move highlights growing tensions between the US government and major AI developers over the ethical deployment of advanced technology in national security. Anthropic, a leading AI safety and research company, has built its reputation on developing responsibly aligned AI systems.

Federal contracts represent a significant revenue stream for major tech firms, and exclusion from this market could impact Anthropic's commercial standing and influence future negotiations between the government and other AI providers on ethical guidelines.