Trump Orders Federal Agencies to Cease Use of Anthropic’s AI Technology Amid Pentagon Dispute
By Melissa Quinn, Senior Reporter, Politics, CBS News
Updated February 27, 2026, 10:43 PM EST
Washington D.C. — In a dramatic escalation of tensions surrounding the use of artificial intelligence (AI) within the U.S. government, former President Donald Trump has issued a directive mandating that all federal agencies immediately halt the use of AI technology developed by California-based company Anthropic.
Trump made the announcement on Friday via a post on his social media platform, Truth Social, asserting that the government "doesn’t need it, doesn’t want it, and will not do business with them again." He further ordered agencies such as the Department of Defense (DoD), which have integrated Anthropic’s AI technology into their operations, to phase out its use within six months. The former president also warned of severe consequences if Anthropic does not assist during this transition period, including the possible invocation of "major civil and criminal consequences."
“I am directing EVERY Federal Agency in the United States Government to IMMEDIATELY CEASE all use of Anthropic’s technology,” Trump wrote. “Anthropic better get their act together, and be helpful during this phase out period, or I will use the Full Power of the Presidency to make them comply.”
Trump characterized Anthropic as a "Radical Left AI company run by people who have no idea what the real World is all about," signaling an ideological dimension to the dispute.
Pentagon Designates Anthropic a Security Risk
Shortly after Trump’s announcement, Defense Secretary Pete Hegseth followed up by formally designating Anthropic a "supply chain risk to national security." Hegseth’s order banned any contractor, supplier, or partner doing business with the U.S. military from conducting commercial activities with Anthropic.
"I am directing the Department of War [DoD] to designate Anthropic a Supply-Chain Risk to National Security. Effective immediately, no contractor, supplier, or partner that does business with the United States military may conduct any commercial activity with Anthropic," Hegseth said in a written statement. Although Hegseth allowed Anthropic up to six months to continue providing services to facilitate a transition to a "more patriotic service," he emphasized the decision was final and underscored that "America’s warfighters will never be held hostage by the ideological whims of Big Tech."
Anthropic’s Response and Legal Challenge
In a Friday statement, Anthropic expressed surprise at the designation, noting they had yet to receive direct communication from the Defense Department or White House about ongoing negotiations. The company vowed to challenge the supply chain risk designation in court, describing such an action as unprecedented and historically reserved for adversaries—not an American company.
"Designating Anthropic as a supply chain risk would both be legally unsound and set a dangerous precedent for any American company that negotiates with the government," Anthropic said. The company further argued that Hegseth lacks the legal authority to ban military contractors from commercial relations with Anthropic, as such risk designations traditionally apply only to contractors’ direct work with the Pentagon.
The Dispute Over AI Guardrails
The conflict centers on Anthropic’s AI model Claude, which is currently deployed on the Pentagon’s classified networks through a partnership with data analytics company Palantir. Anthropic was awarded a $200 million Pentagon contract last July to develop AI capabilities aimed at enhancing national security.
However, the Pentagon has pressed Anthropic to relinquish certain "guardrails" or safeguards the company had placed on the military’s use of Claude. These restrictions include limits against mass surveillance of Americans and prohibitions against autonomous decisions in lethal targeting without human oversight. Pentagon officials argue unrestricted access to the AI model is necessary for national security purposes.
Pentagon Chief Technology Officer Emil Michael told CBS News that while the military made concessions to address Anthropic’s concerns, they ultimately require unfettered access. "At some level, you have to trust your military to do the right thing," Michael said, defending the Pentagon’s position.
Anthropic CEO Dario Amodei has maintained the company’s insistence on strong safety measures, saying the threats from the Defense Department will not alter their stance. In a statement on Thursday, Amodei pledged continued support for the military “with our two requested safeguards in place,” while also committing to work on a smooth transition should the government choose to discontinue their use of Anthropic’s technology.
Broader Industry and Political Reactions
The news sparked reactions across the political and AI sectors. Democratic Senator Mark Warner of Virginia, vice chair of the Senate Intelligence Committee, criticized Trump’s directive and the Defense Department’s move as an attempt to bully the company into deploying "AI-driven weapons without safeguards," warning that such actions should "scare the hell out of all of us."
Meanwhile, OpenAI CEO Sam Altman announced via social media that OpenAI had reached an agreement with the Defense Department to deploy its AI models on the military’s classified networks under strict safety principles. Altman emphasized prohibitions on domestic mass surveillance and mandatory human responsibility for the use of force, principles that OpenAI has urged the Pentagon to require from all AI contractors.
What’s Next?
This high-profile standoff over Anthropic’s AI technology highlights the tension between technological innovation, national security, and ethical considerations in military applications of artificial intelligence. With Anthropic threatening legal challenges and the Pentagon vowing strict compliance measures, the coming months will be critical in determining how AI technology will be integrated and regulated within U.S. government operations.
Melissa Quinn covers U.S. politics for CBSNews.com, focusing on federal courts and the Supreme Court.
Contributors to this story include Caitlin Yilek, Jennifer Jacobs, and Jo Ling Kent.
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