Federal Agencies Ordered to Stop Using Anthropic AI Immediately

According to Neowin, President Donald Trump has reportedly directed all U.S. federal agencies to immediately stop using Anthropic’s AI models, triggering what could become one of the most significant AI procurement shifts in Washington.

The order calls for agencies to begin phasing out Anthropic technology from federal systems, with a full withdrawal expected within six months.

White House directive targets AI use across government

In a post on Truth Social, Trump criticized Anthropic as a politically biased company and argued that it should not influence how U.S. military operations are conducted.

He warned that agencies failing to comply with the directive could face civil or criminal consequences. Trump also stated that the administration would use the “full power of the Presidency” to enforce the order if necessary.

The directive reportedly affects all federal departments currently using Anthropic’s models for research, analysis, automation, or defense-related workflows.

Pentagon to label Anthropic a supply-chain risk

The Department of Defense is expected to formally designate Anthropic as a supply-chain risk, a move that would significantly limit its role in federal contracting.

U.S. Secretary of War Pete Hegseth said military contractors and strategic partners would be barred from engaging in commercial activity with Anthropic if the designation proceeds. He added that the military requires unrestricted access to advanced AI systems for lawful defense and national security purposes.

If implemented, the designation would effectively block Anthropic from participating in future defense-related AI deployments.

Dispute linked to military AI restrictions

The conflict reportedly escalated after Anthropic signaled that it would not allow its AI models to be used for certain military applications, including surveillance systems or remote weapons control.

That stance appears to have triggered concerns within defense circles about long-term reliability and access to critical AI infrastructure.

Anthropic is expected to challenge the Pentagon’s proposed supply-chain risk designation, potentially setting up a legal battle over federal procurement authority and AI policy.

Broader AI realignment underway

The move comes amid heightened geopolitical tensions surrounding AI development and intellectual property protection. Anthropic recently accused Chinese entities of attempting to copy its models, adding another layer of complexity to its federal standing.

At the same time, OpenAI has reportedly finalized major funding arrangements involving NVIDIA and Amazon, signaling continued consolidation and strategic alignment within the AI sector.

If enforced as outlined, the administration’s directive would mark a major restructuring of federal AI partnerships and could reshape how U.S. agencies select and deploy advanced AI systems going forward.