Trump orders federal agencies to stop using Anthropic's technology, and Hegseth declares it a 'supply-chain risk'

The Department of Defense has taken a significant step by identifying Anthropic as a potential supply chain risk, a move that could jeopardize the AI startup's operations with U.S. companies. In a statement shared on social media, Defense Secretary Pete Hegseth announced that he would instruct his department to classify Anthropic as a 'supply-chain risk to national security.' This designation means that effective immediately, any contractor, supplier, or partner currently engaged with the U.S. military will be prohibited from conducting business with Anthropic. This drastic action follows an earlier directive from former President Donald Trump, who ordered federal agencies to cease using Anthropic's technology. Trump conveyed his stance on social media, asserting, "We don't need it, we don't want it, and will not do business with them again." This conflict arises from ongoing negotiations between Anthropic and the Defense Department regarding the AI company's product, Claude. The controversy escalated as Trump announced a six-month phase-out period for military departments using Anthropic's products. He emphasized that the decision-making regarding the country's future should not be influenced by, as he described, an 'out-of-control, Radical Left AI company.' His remarks came just hours before a deadline set by defense officials for Anthropic to comply with military terms of use for Claude. Discussions hit a standstill over the military’s desire to implement mass surveillance and autonomous weapons, two elements Anthropic was unwilling to compromise on. Hegseth had given Anthropic's CEO, Dario Amodei, until Friday afternoon to align with military expectations. He also cautioned that the government might invoke the Defense Production Act, a measure that grants extensive authority over a company’s resources, potentially marking a historic move against an American tech firm. In a blog post earlier this week, Amodei stated that the Defense Department had modified its contract language to allow for 'any lawful use' of Claude, effectively giving the military considerable discretion in its deployment. Despite this, Amodei expressed a commitment to serving the Department of Defense but maintained that they could not accept the military's requests in good faith.