US Government Bans Anthropic, Pivots to OpenAI
The Trump administration has ordered all federal agencies and military contractors to cease using AI from Anthropic, which the Pentagon labeled a "supply risk." Just hours later, the Pentagon announced a new deal with rival OpenAI. The move effectively sidelines a major AI player from government contracts and consolidates the administration's reliance on OpenAI.
The core of the dispute was Anthropic's refusal to remove safety guardrails that would prevent its AI, Claude, from being used for mass domestic surveillance or fully autonomous weapons systems. The Pentagon demanded unrestricted access for all "lawful purposes," leading to an impasse in negotiations. Defense Secretary Pete Hegseth labeled Anthropic a "supply-chain risk," a designation historically used for foreign adversaries, and barred any contractor doing business with the military from also working with Anthropic. President Trump directed all federal agencies to cease using the company's technology, allowing a six-month phase-out period. Anthropic had a contract with the Pentagon worth up to $200 million and was the first AI company to deploy its models on the government's classified networks. The company has stated its intention to challenge the "supply chain risk" designation in court, calling the move "legally unsound" and a "dangerous precedent." Hours after the ban, OpenAI CEO Sam Altman announced a new deal to provide OpenAI's models for the Pentagon's classified networks. Altman stated that OpenAI's agreement includes prohibitions on domestic mass surveillance and requires human responsibility for the use of force, the same principles Anthropic had advocated for.
