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Pentagon labels Anthropic a national security supply-chain risk after contract dispute

Tensions between the US government and AI company Anthropic have escalated sharply following a public disagreement over defense applications of artificial intelligence. In a post on Truth Social, President Donald Trump directed federal agencies to stop using all Anthropic products. While departments were given a 6-month phase-out period, the president made clear that the company would no longer be considered for federal contracts. “We don’t need it, we don’t want it, and will not do business with them again,” he wrote.

The president’s post did not reference an earlier warning about designating Anthropic as a supply-chain risk. However, Defense Secretary Pete Hegseth later confirmed that step. “In conjunction with the President’s directive for the Federal Government to cease all use of Anthropic’s technology, I am directing the Department of War to designate Anthropic a Supply-Chain Risk to National Security,” Hegseth wrote. “Effective immediately, no contractor, supplier, or partner that does business with the United States military may conduct any commercial activity with Anthropic.”

The dispute stems from Anthropic’s refusal to allow its AI models to be used for mass domestic surveillance or fully autonomous weapons. CEO Dario Amodei reaffirmed the company’s stance in a public post on Thursday. “Our strong preference is to continue to serve the Department and our warfighters — with our 2 requested safeguards in place,” he said. “Should the Department choose to offboard Anthropic, we will work to enable a smooth transition to another provider, avoiding any disruption to ongoing military planning, operations, or other critical missions.”

Support for Anthropic’s position emerged from OpenAI. According to a broadcaster, CEO Sam Altman told staff he shared the same “red lines,” rejecting uses that were “unlawful or unsuited to cloud deployments, such as domestic surveillance and autonomous offensive weapons.” Co-founder Ilya Sutskever also praised the stance. Within hours of the federal directive, OpenAI announced a Pentagon deal that Altman said upheld the same principles. A newspaper reported that talks began on Wednesday. Anthropic, OpenAI, and Google had each received Defense Department contract awards last July, though Google and its parent company have not commented.

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