WASHINGTON: The U.S. government has taken the extraordinary step of sanctioning artificial intelligence company Anthropic, directing federal agencies to cease use of its technology and effectively blacklisting the startup from future military contracts after a bitter standoff over AI ethics and national security.
President Donald Trump on Friday ordered all federal agencies to phase out the use of Anthropic’s AI systems, including its Claude models, saying the dispute with the Department of Defense had made the company a “supply chain risk.” Defense Secretary Pete Hegseth also declared Anthropic a national security threat, banning Pentagon contractors and partners from engaging with the firm.
The confrontation stems from Anthropic’s refusal to remove built-in safeguards that bar its AI tools from being used in fully autonomous weapons or mass domestic surveillance — terms the Defense Department said were unacceptable for broad military deployment.
“Designating Anthropic as a supply chain risk would be an unprecedented action — one historically reserved for U.S. adversaries,” Anthropic said in a company blog post, signaling plans to challenge the government’s move in court.
The dispute has rippled across the tech and defense sectors, raising questions about the federal government’s authority to shape how private companies govern AI use. Some analysts say the decision could chill innovation, while others argue it underscores growing concerns over the ethical implications of advanced AI on the battlefield.
OpenAI, a rival AI developer, quickly reached an agreement with the Pentagon to supply its technology for classified military networks, a deal officials said includes assurances against certain controversial uses.
The move marks one of the most dramatic clashes yet between the U.S. government and a leading AI firm, spotlighting the complex interplay of national security, technological ethics and corporate autonomy.