Trump Admin Bans Anthropic, OpenAI Inks Pentagon Deal
The Trump administration has ordered all federal agencies and military contractors to stop using Anthropic's AI, labeling the startup a “supply risk.” Just hours later, OpenAI struck a new deal with the Pentagon to deploy its models for defense and intelligence applications. The move represents a swift and decisive reshuffling of the government's key AI partners.
The core of the dispute was Anthropic's refusal to remove its "red lines" which prohibit the use of its AI for mass surveillance and fully autonomous weapons. CEO Dario Amodei stated the company "cannot in good conscience accede" to the Pentagon's demand for unrestricted use, citing the unreliability of current AI models for such critical applications. In response, the Trump administration not only directed all federal agencies to cease using Anthropic's technology within six months but also took the unprecedented step of designating the American company a "supply chain risk." This designation, typically reserved for foreign adversaries like China's Huawei, could prevent any contractor or supplier doing business with the U.S. military from also working with Anthropic. The now-canceled contract with Anthropic was valued at up to $200 million and was part of a broader Pentagon initiative to partner with leading AI firms. The General Services Administration (GSA) has already removed Anthropic from its federal procurement schedules and the USAi.gov platform, a centralized "sandbox" for agencies to test AI models. OpenAI's new agreement to deploy its models on the Pentagon's classified network incorporates what CEO Sam Altman calls "technical safeguards" that mirror Anthropic's principles. The deal reportedly prohibits domestic mass surveillance and requires human responsibility for the use of force, framing the limitations as technical controls within the model rather than overarching policy restrictions, a key distinction that seemingly satisfied the Defense Department. The move has drawn varied reactions. Senator Mark Warner expressed "serious concerns about whether national security decisions are being driven by careful analysis or political considerations." Meanwhile, hundreds of employees from Google and OpenAI signed an open letter in support of Anthropic's ethical stance, and some venture capitalists praised the company for sticking to its principles.
