Trump Orders US Agencies to Halt Anthropic AI Apply Amid Pentagon Dispute

President Donald Trump has directed all U.S. Federal agencies to cease using technology developed by Anthropic, following a public disagreement with the Pentagon regarding artificial intelligence safety protocols. The move escalates a conflict centered on the appropriate safeguards for AI deployment within the military.

The Clash with the Pentagon

The dispute arose from Anthropic CEO Dario Amodei’s stance that the company “cannot in good conscience” allow the Department of Defense (DoD) unrestricted use of its AI models. Anthropic sought assurances that its technology would not be utilized for fully autonomous weapons systems or mass domestic surveillance . The DoD, however, insisted on the ability to deploy the models without such limitations.

Escalation and Threats

Defense Secretary Pete Hegseth threatened to designate Anthropic as a “supply chain risk” and potentially invoke the Defense Production Act to compel the company’s compliance . A meeting between Hegseth and Amodei on Tuesday resulted in a Friday deadline for Anthropic to accept the DoD’s terms. The DoD subsequently presented Anthropic with a “last and final offer” on Wednesday night .

Anthropic’s Position and Ongoing Negotiations

Despite the pressure, Amodei maintained Anthropic’s position, stating that the agency’s threats would not alter the company’s commitment to its ethical guidelines. He expressed hope that the DoD would reconsider its demands, acknowledging the value Anthropic’s technology provides to the armed forces . As of Thursday, February 26, 2026, Anthropic indicated that negotiations with the DoD were still ongoing .

Broader Implications and Industry Response

The Pentagon has been utilizing Anthropic’s technology as part of a $200 million pilot program . Other AI companies, including OpenAI and Elon Musk’s xAI, are as well participating in the program. Notably, xAI has reportedly agreed to allow the Pentagon to use its AI tool in classified settings. The Information Technology Industry Council, representing companies like Nvidia, Amazon, Apple, and OpenAI, expressed concern over recent reports regarding the dispute between the Pentagon and an unnamed tech company .

Anthropic’s Talks to “Deescalate”

Anthropic CEO Dario Amodei is currently in talks with under-secretary of defense for research and engineering, Emil Michael, to “deescalate” the situation .