US President Donald Trump has directed federal agencies to immediately stop using technology from Anthropic after the company refused the Pentagon’s demand to grant unconditional military use of its Claude AI models. The standoff highlights growing tensions between private AI companies and the US government over ethics, surveillance, and autonomous weapons.
In a statement, Anthropic condemned the Pentagon’s request as “intimidation” and said its technology should not be employed for mass domestic surveillance or fully autonomous weapon systems. “No amount of intimidation or punishment from the Department of War will change our position on mass domestic surveillance or fully autonomous weapons,” the company said. Anthropic also announced plans to sue the government if pressured further.
President Trump posted on Truth Social that federal agencies must cease using Anthropic technology immediately. “We don’t need it, we don’t want it, and will not do business with them again!” he wrote. Trump added that the company must cooperate during the phase-out period or face “major civil and criminal consequences.”
The Pentagon had set a deadline of 5:01 p.m. ET on Saturday for Anthropic to comply, citing the Defence Production Act. This Cold War-era law grants sweeping powers to direct private industry toward national security priorities and was last invoked during the Covid-19 pandemic. Officials also threatened to label Anthropic a supply chain risk, a designation normally reserved for companies in adversary nations.
Anthropic responded that it would challenge any such designation in court. The company emphasized that AI, in certain circumstances, could undermine democratic values rather than defend them. “We will challenge any supply chain risk designation in court,” Anthropic said in a statement from its San Francisco headquarters.
US Defence Secretary Pete Hegseth confirmed the Pentagon would bar contractors, suppliers, and partners from doing commercial business with Anthropic. Hegseth called Anthropic’s stance “a master class in arrogance and betrayal.” The move drew political commentary from House Democrat Hakeem Jeffries, who praised the company’s refusal to comply, calling mass surveillance of Americans “unacceptable.”
The dispute has sparked support from the AI industry. Hundreds of employees at OpenAI and Google DeepMind signed a letter backing Anthropic, urging companies to resist Pentagon demands for domestic surveillance and autonomous lethal weapon use. OpenAI CEO Sam Altman told staff that he is seeking similar protections in agreements with the Pentagon, emphasizing that humans should remain in the loop for high-stakes automated decisions.
Anthropic said it remains “ready to continue our work to support the national security of the United States” while maintaining ethical safeguards on its technology. The confrontation underscores the difficult balance between national security interests and the ethical deployment of advanced AI systems.
