Trump Cuts Federal Ties With $15 Billion AI Firm Anthropic In Military Showdown

by Stefan J. Bos, Worthy News Chief International Correspondent

WASHINGTON (Worthy News) – U.S. President Donald J. Trump on Friday ordered all federal agencies to phase out their use of artificial intelligence (AI) technology from Anthropic, a leading U.S.-based AI firm valued at about $15 billion, following a high-profile dispute with the Pentagon, the headquarters of the U.S. Department of Defense, over military use of the technology.

AI refers to advanced computer systems capable of analyzing data, generating human-like text, assisting in decision-making and automating complex tasks using machine learning models.

According to officials familiar with the discussions, the Department of Defense had pressed Anthropic to permit broader military use of its AI systems or risk losing federal contracts.

Anthropic sought assurances that its technology would not be used for fully autonomous weapons or mass domestic surveillance. The Pentagon has denied any plans to deploy the technology for such purposes.

Anthropic CEO Dario Amodei said the company “cannot in good conscience accede” to the Defense Department’s demands.

TRUMP ORDERS SIX-MONTH PHASEOUT

“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 wrote on his Truth Social platform.

The administration said agencies will have six months to transition away from Anthropic products.

Trump also warned he would use “the Full Power of the Presidency to make them comply, with major civil and criminal consequences to follow” if the company did not cooperate during the phaseout period.

Anthropic currently holds a $200 million contract with the U.S. Defense Department.

Pentagon spokesman Sean Parnell said the agency intends to “use Anthropic’s model for all lawful purposes,” though officials have not detailed specific operational uses.

SECRETARY CALLS FIRM ‘SUPPLY-CHAIN RISK’

Defense Secretary Pete Hegseth, whom President Trump has referred to as “Secretary of War,” criticized the company sharply.

“Anthropic delivered a master class in arrogance and betrayal as well as a textbook case of how not to do business with the United States Government or the Pentagon,” Hegseth wrote on social media platform X.

“America’s warfighters will never be held hostage by the ideological whims of Big Tech,” he added.

Hegseth later declared Anthropic a “supply-chain risk,” stating that no contractor, supplier or partner doing business with the U.S. military may conduct commercial activity with the firm.

Anthropic said it views the designation as unwarranted and stated it would challenge any such determination in court.

DEMOCRATS QUESTION SECURITY RATIONALE

Democrats criticized the administration’s handling of the dispute. Sen. Mark Warner of Virginia, the top Democrat on the Senate Intelligence Committee, said the move “raises serious concerns about whether national security decisions are being driven by careful analysis or political considerations.”

The standoff highlights growing tensions between the U.S. government and major AI developers over ethical safeguards, military applications and the role of private technology firms in national defense.

Critics within the defense community argue that strict usage limits could slow U.S. military innovation in a technological race with rivals such as China.

Supporters of safeguards warn that removing restrictions could accelerate the development of lethal autonomous weapons — sometimes called “killer robots” — capable of selecting and engaging targets without direct human oversight.

The administration’s decision signals a tougher stance toward technology firms that resist expanded military applications. That policy will likely reshape how Silicon Valley companies interact with the U.S. military, according to analysts.

The outcome could influence not only U.S. defense policy but also emerging global standards governing AI and warfare, experts say.

Latest Worthy News