Trump Labels Anthropic ‘Security Risk’, Amid US Ban Order On AI Firm

The Trump administration banned federal use of Anthropic tech, labeling it a “supply chain risk” after the firm refused to give the Pentagon unrestricted access to its AI models over ethical concerns.

In a dramatic escalation of tensions between the US government and the artificial intelligence sector, President Donald Trump has ordered all federal agencies to stop using technology developed by AI company Anthropic. The directive, which includes a six-month phase-out period, follows a high-stakes dispute between the company and the Pentagon over how its AI systems should be used in military operations.

At the core of the conflict is Anthropic’s refusal to grant unrestricted access to its AI models—particularly its flagship system, Claude—for defense purposes. The Pentagon had pushed for broader usage rights, including potential deployment in surveillance and autonomous military systems. However, Anthropic resisted these demands, citing ethical concerns and the risks of misuse, especially in areas like mass surveillance and fully autonomous weapons.

Trump labels Anthropic - 'Supply Chain Risk'

In response, the Trump administration moved aggressively, designating Anthropic as a “supply chain risk.” This classification places the company in a category typically reserved for foreign adversaries, drawing direct comparisons to the restrictions imposed on Chinese tech giant Huawei in 2018. The label effectively bars US government agencies, military contractors, and partners from engaging with Anthropic’s technology.

The decision marks one of the most severe regulatory actions taken against a domestic AI company. Experts warn that such a designation could significantly damage Anthropic’s business prospects, not only in government contracts but also across the private sector. The move could isolate the company from key partnerships and disrupt its anticipated growth trajectory, including potential plans for a public offering.

Anthropic, backed by major tech players like Google and Amazon, has made it clear that it intends to challenge the government’s decision in court. The company argues that the “supply chain risk” label is both legally unfounded and sets a dangerous precedent for how private firms negotiate with the government on sensitive technologies.

Interestingly, rival AI firm OpenAI has publicly supported Anthropic’s stance on setting boundaries for military AI use, even as it pursues its own agreements with the US government under defined safeguards. This highlights a broader divide within the tech industry over the role of AI in warfare and national security.

The controversy underscores a growing global debate on the ethical deployment of artificial intelligence, particularly in defense contexts. While governments seek strategic advantages through advanced technologies, companies like Anthropic are increasingly asserting limits to prevent misuse.

Trump’s decision signals a hardline approach to national security and technological control, but it also raises pressing questions about innovation, corporate autonomy, and the future of AI governance in an increasingly militarized digital landscape.