President Donald Trump has ordered all federal agencies to stop using technology from artificial intelligence company Anthropic. The directive, announced via the social media platform Truth Social on Friday, gives departments a six-month period to phase out the company's products.
"We don't need it, we don't want it, and will not do business with them again," Trump wrote. He added that the US would "decide the fate of our Country — NOT some out-of-control, Radical Left AI company run by people who have no idea what the real World is all about."
Deadline Passes After Contract Impasse
The announcement came just hours before a 5:01 p.m. Eastern Time deadline set by Defense Secretary Pete Hegseth for Anthropic to agree to the military's terms for using its flagship AI model, Claude. Negotiations had reached an impasse earlier in the week over two key safeguards the company was unwilling to drop: the prohibition of mass surveillance of US citizens and autonomous weapons systems.
Secretary Hegseth had warned that the government could invoke the Defense Production Act, a wartime law granting the president broad authority over company resources, and designate Anthropic as a supply chain risk. Experts told Business Insider that either action would be unprecedented against an American technology firm.
Anthropic's Stance and Revised Contract
On Thursday, Anthropic's CEO, Dario Amodei, published a blog post stating the Defense Department had added language to its contract allowing for "any lawful use" of Claude. A source familiar with the negotiations said this language effectively gave the military full discretion over the model's deployment.
Amodei stated the company wished to continue serving the department but could not "in good conscience accede to their request." The dispute appears to centre on fundamental ethical boundaries for AI deployment in military and surveillance contexts.
Unprecedented Federal Action
The sweeping order to cease business with a major domestic AI firm represents a significant escalation in the government's approach to regulating advanced technology. The six-month phase-out period applies to all departments, including the Department of Defense, which were "using Anthropic's products, at various levels."
The move highlights growing tensions between the rapid development of frontier AI models and government demands for unrestricted usage rights, particularly in defence and national security spheres. The outcome sets a major precedent for future relations between the US government and the AI industry.