Shannon Bond
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Being designated a risk to national security is highly unusual for an American company and poses a threat to Anthropic's business.
Secretary of Defense Pete Hegseth made the announcement on X after the Pentagon and the company reached an impasse in a dispute over how the military could use Anthropic's AI model, Claude.
Hegseth said the designation means, quote, effective immediately, no contractor, supplier, or partner that does business with the United States military may conduct any commercial activity with Anthropic.
Anthropic called the move, quote, legally unsound and warned it would, quote, set a dangerous precedent for any American company that negotiates with the government.
Being designated a risk to national security is highly unusual for an American company and poses a threat to Anthropic's business.
Secretary of Defense Pete Hegseth made the announcement on X after the Pentagon and the company reached an impasse in a dispute over how the military could use Anthropic's AI model, Claude.
Hegseth said the designation means, quote, effective immediately, no contractor, supplier, or partner that does business with the United States military may conduct any commercial activity with Anthropic.
Anthropic called the move, quote, legally unsound and warned it would, quote, set a dangerous precedent for any American company that negotiates with the government.
In a post on his Truth Social platform, the president said he was directing all federal agencies to immediately cease using Anthropic's AI tools.
He also said agencies, including the Pentagon, would have six months to phase out Anthropic's products.
Anthropic and the Defense Department have been at loggerheads over how the military can use its AI model, CLAUD,
under a contract worth up to $200 million.
Anthropic says Claude cannot be used for domestic surveillance or to power autonomous weapons.
The Pentagon says AI companies must allow all lawful uses of their technology.
Anthropic's CEO had said the company would not back down despite the government's threats.
Being designated a risk to national security is highly unusual for an American company and poses a threat to Anthropic's business.