Trump orders federal agencies to halt Anthropic AI use, sets six-month phase-out

The Pentagon is still using Anthropic’s Claude, even after Trump ordered a phase-out

• Trump orders US agencies to stop using Anthropic AI tech
• Pentagon cites Anthropic as a national security supply chain risk
• Anthropic plans legal challenge, impact focused on government use

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President Donald Trump has directed all US federal agencies to immediately stop using technology from AI startup Anthropic, giving departments six months to remove the company's tools from sensitive military and intelligence workflows.

The order escalates what began as a contract dispute into a national security confrontation, placing one of the country's leading AI firms at the center of a policy clash over how advanced models should be used in defense operations.

Pentagon access dispute at the core

The trigger for the decision was the Pentagon's reported request for broader, unrestricted access to Anthropic's Claude model for certain missions. Anthropic declined, reiterating its stance that it supports government partnerships but will not enable domestic mass surveillance of Americans or fully autonomous weapons systems that operate without meaningful human oversight.

Defense officials subsequently labeled Anthropic a "supply chain risk to national security," a designation that can restrict participation in federal programs and deter contractors from working with the company.

Legal challenge likely

Anthropic has indicated it plans to challenge the designation in court, calling it an extraordinary move for a US-based firm and arguing that it lacks established legal grounding. The company has also sought to reassure commercial customers, stating that consumer-facing and API services are not expected to be affected.

The immediate impact appears concentrated on government contracts and classified deployments. However, if Claude is embedded in intelligence or defense systems, agencies may face operational disruptions as they transition to alternative providers.

Broader implications for AI governance

The episode reflects a widening tension between AI developers and governments. Federal agencies are seeking access to frontier AI capabilities for defense and intelligence use, while leading labs are drawing enforceable boundaries around certain applications.

The dispute underscores a larger shift: AI policy is no longer confined to innovation and competition debates. It is now directly tied to national security strategy, procurement authority and the rules governing how powerful models are deployed in the most sensitive domains.