Washington – Former President Donald Trump has directed all federal agencies to cease using technology developed by Anthropic, an artificial intelligence company, escalating a dispute over access to its AI tools. The move, announced Friday on Trump’s Truth Social platform, comes after the Pentagon deemed Anthropic a “supply chain risk” for refusing to grant the U.S. Military unfettered access to its AI systems. This clash highlights growing tensions between the government and private AI developers regarding national security concerns and the ethical implications of advanced technology.
The core of the conflict centers on Anthropic’s reluctance to allow the military to utilize its AI, including the chatbot Claude, for purposes the company fears could lead to “mass surveillance” and “fully autonomous weapons,” as stated by the company. Defence Secretary Pete Hegseth insisted that Anthropic agree to “any lawful leverage” of its technology, a demand the company resisted. The Pentagon’s decision to label Anthropic a supply chain risk – a designation typically reserved for companies based in adversary nations – effectively prohibits any contractor working with the military from doing business with the AI firm.
Hegseth announced the designation on X, formerly Twitter, stating, “Anthropic delivered a masterclass in arrogance and betrayal as well as a textbook case of how not to do business with the United States Government or the Pentagon.” He further directed the Pentagon to immediately enforce the restriction, barring any commercial activity between military partners and Anthropic. The situation unfolded rapidly after the Pentagon set a deadline of 5:01 p.m. Friday for Anthropic to comply, threatening to invoke the Defense Production Act if the company did not yield.
A Cold War-Era Law Revived
The Defense Production Act, originally enacted during the Korean War, grants the federal government broad authority to mobilize private industry in support of national defense. While rarely used in recent decades, it was notably invoked during the Covid-19 pandemic to accelerate the production of vaccines and medical supplies. Its application in this case signals the seriousness with which the Pentagon views access to advanced AI capabilities. The law allows the government to compel companies to prioritize contracts and allocate resources as needed for national security purposes.
Anthropic has vowed to challenge the supply chain risk designation in court, arguing It’s “legally unsound and set[s] a dangerous precedent for any American company that negotiates with the government.” The company stated it had not yet received direct communication from the White House or the military regarding the status of negotiations as of Friday evening.
Industry Solidarity and Ethical Concerns
The dispute has sparked a wider debate within the AI industry about the ethical boundaries of military applications. Hundreds of employees from Google DeepMind and OpenAI voiced their support for Anthropic, signing an open letter titled “We Will Not Be Divided.” The letter expressed concerns about the potential for AI to be used for “domestic mass surveillance and autonomously killing people without human oversight.”
OpenAI CEO Sam Altman reportedly informed employees that his company is also seeking an agreement with the Pentagon that would establish similar “red lines” to those Anthropic has proposed. Altman indicated a willingness to facilitate mediate a resolution, emphasizing OpenAI’s long-held belief that “AI should not be used for mass surveillance or autonomous lethal weapons, and that humans should remain in the loop for high-stakes automated decisions,” according to US media reports.
Criticism of Trump’s Directive
The Centre for Democracy and Technology (CDT), a Washington-based technology policy NGO, sharply criticized Trump’s directive. CDT chief Alexandra Givens stated the President was “wielding the full weight of the federal government to blacklist a company for taking a narrowly-tailored, principled stance to restrict some of the most extreme uses of AI you could imagine.” She added that the action “sets a dangerous precedent” and “chills private companies’ ability to engage frankly with the Government about appropriate uses of their technology.”
The situation raises fundamental questions about the balance between national security interests and the responsible development and deployment of artificial intelligence. The implications of this dispute extend beyond Anthropic, potentially shaping the future relationship between the U.S. Government and the rapidly evolving AI sector. The use of the Defense Production Act and the threat of a supply chain risk designation, represent a significant escalation in the government’s efforts to secure access to cutting-edge AI technologies.
What’s Next?
As of Saturday, February 28, 2026, Anthropic is preparing to legally challenge its designation as a supply chain risk. The company has not specified a timeline for filing its lawsuit, but it is expected to move quickly to contest the decision. The Pentagon has not indicated any willingness to renegotiate its demands for access to Anthropic’s AI tools. Further developments, including any legal filings or potential congressional hearings, are anticipated in the coming weeks. The Biden administration is expected to weigh in on the matter, potentially seeking a compromise that addresses both national security concerns and ethical considerations.
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