In a major move, US President Donald Trump directed US federal agencies to cease using AI tools from Anthropic with the Pentagon labelling the company a "supply chain risk."
“I am directing EVERY Federal Agency in the United States Government to IMMEDIATELY CEASE all use of Anthropic’s technology. We don’t need it, we don’t want it, and will not do business with them again!” Trump said in a post on Truth Social on Thursday.
As per multiple reports, federal agencies, including the Department of War now have six months to stop using Anthropic's Claude AI models.
Why Trump banned AI firm Anthropic?
This decision comes after weeks of disagreements between the Pentagon and Anthropic about whether the company would remove restrictions that limit the military use of its AI technology.
The Pentagon wanted Anthropic to allow its AI to be used for all legal military purposes without any restrictions but Anthropic's CEO refused, saying that the company could not remove safety measures that prevent misuse in domestic surveillance and fully autonomous weapons systems.
Anthropic vows legal action against Pentagon
In response, Anthropic issued a lengthy statement on Friday evening in which the company announced its plan to legally challenge the Pentagon's decision to label the company a supply-chain risk.
It said, "Designating Anthropic as a supply chain risk would be an unprecedented action—one historically reserved for US adversaries, never before publicly applied to an American company. We are deeply saddened by these developments."
"No amount of intimidation or punishment from the Department of War will change our position on mass domestic surveillance or fully autonomous weapons. We will challenge any supply chain risk designation in court," the company added.
Anthropic claimed that it has made a genuine effort to cooperate with the Department of War and supports all legal military uses of AI, except for two specific areas.
The company made $200 million agreement with the Pentagon last year and its Claude AI is currently the only advanced AI model extensively used for sensitive military planning and operations.
Reports suggested that Claude AI was also involved in the Pentagon's "Maven Smart System" which helped plan and carry out military operation to capture Venezuelan President Nicolas Maduro in January.