Trump orders all federal agencies to stop using Anthropic

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- Trump posted on Truth Social Friday directing every federal agency to "IMMEDIATELY CEASE" use of Anthropic's products, accusing the company of trying to "STRONG-ARM" the Pentagon and calling it a "radical left, woke company."
- The fight centers on Anthropic CEO Dario Amodei's refusal to accept an updated Pentagon agreement requiring "any lawful use" of its AI — a demand Defense Secretary Pete Hegseth mandated in a January memo.
- The contested terms would give the US military access to Anthropic's services for mass domestic surveillance and lethal autonomous weapons, or AI that can track and kill targets with no humans in the decision loop.
- OpenAI and xAI have reportedly already agreed to the new "any lawful use" language, though OpenAI is reportedly seeking to negotiate the same red lines Anthropic is drawing.
- Trump's order includes a six-month phase-out period for agencies like the "Department of War" already using Anthropic, with Trump threatening "major civil and criminal consequences" if the company doesn't cooperate.
- In a Thursday statement, Amodei said the Pentagon's "threats do not change our position" and that Anthropic "cannot in good conscience accede" — but offered to enable a smooth transition to another provider and keep its models available during the wind-down.
Why it matters: Anthropic stands to lose all federal contracts, including its Pentagon business, over red lines it says are about preventing mass domestic surveillance and lethal autonomous weapons — while competitors OpenAI and xAI already capitulated to the same terms. Trump paired the six-month phase-out with a threat of "major civil and criminal consequences" against Anthropic, a level of pressure that signals the administration is willing to weaponize federal procurement against a specific AI vendor to set a precedent for the industry.
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