Defense Secretary Pete Hegseth has moved to formally classify artificial intelligence firm Anthropic as a supply chain risk, escalating a high-stakes clash between the Trump administration and a Silicon Valley company that has resisted Pentagon demands over the use of its technology.
The decision follows President Trumps directive ordering all federal agencies to halt use of Anthropics products, as reported by The Hill, after the company refused to fully accommodate the Defense Departments (DOD) operational requirements.
In a post on X, Hegseth declared, Effective immediately, no contractor, supplier, or partner that does business with the United States military may conduct any commercial activity with Anthropic, signaling that the administration is prepared to leverage the full weight of the federal procurement system to enforce compliance. The move underscores a broader conservative concern that unelected tech executives are attempting to override constitutional authority with corporate terms of service.
Hegseth stated that Anthropic will be permitted to continue providing services to the Pentagon for no more than six months to allow for a seamless transition to a better and more patriotic service. That phase-out mirrors Trumps own order, which similarly set a six-month window for federal agencies to disengage from the companys technology.
The Defense Secretary framed the dispute in stark ideological terms, asserting, Anthropics stance is fundamentally incompatible with American principles, and warning that Their relationship with the United States Armed Forces and the Federal Government has therefore been permanently altered.
Reinforcing that message, Hegseth insisted that the U.S. military must never be dependent on the political or cultural preferences of technology firms headquartered in left-leaning enclaves. Americas warfighters will never be held hostage by the ideological whims of Big Tech. This decision is final, he added, casting the break as a matter of national sovereignty and military readiness rather than a mere contractual disagreement. For conservatives long wary of Big Techs influence, the Pentagons posture reflects a growing willingness to confront what they see as corporate overreach.
Trump, for his part, blasted the company in characteristically blunt terms on Truth Social, accusing Anthropic of attempting to dictate terms to the Pentagon. The Leftwing nut jobs at Anthropic have made a DISASTROUS MISTAKE trying to STRONG-ARM the Department of War, and force them to obey their Terms of Service instead of our Constitution, the president wrote, framing the dispute as a clash between progressive corporate ideology and constitutional governance. We dont need it, we dont want it, and will not do business with them again! he added, making clear that, from the White Houses perspective, the relationship is effectively over.
According to the Pentagon, Anthropic was given a Friday afternoon deadline to accept revised terms, described as the departments last and final offer, which was delivered Wednesday night. Late Thursday, Anthropic CEO Dario Amodei publicly rejected the proposal, saying the company could not in good conscience agree. Amodei emphasized that Anthropic recognizes that the DOD and not private companies make military decisions and insisted the firm has never raised objections to particular operations or attempted to limit the use of its technology in an ad hoc manner.
At the same time, Amodei argued there are lines the company will not cross, even in cooperation with the U.S. military. However, in a narrow set of cases, we believe AI can undermine, rather than defend, democratic values, he added. Some uses are also simply outside the bounds of what todays technology can safely and reliably do. A company spokesperson went further, contending that the Pentagons latest proposal framed as compromise was paired with legalese that would allow those safeguards to be disregarded at will.
By designating Anthropic as a supply chain risk, the Pentagon is effectively barring its vast network of contractors and subcontractors from using the companys services and tools. Such a label is typically reserved for entities tied to foreign adversaries, underscoring how seriously the DOD views the standoff and how far it is willing to go to prevent what conservatives see as ideological veto power over U.S. defense policy.
The underlying dispute centers on Anthropics terms of service for its AI models, with the DOD pressing for language that would permit use of the technology for all lawful purposes, while the company seeks to prohibit applications such as mass domestic surveillance or fully autonomous lethal weapons.
Hegseth, speaking again on Friday, sharply criticized Amodei, accusing him of attempting to strong-arm the U.S. military into submission and denouncing the companys position as a cowardly act of corporate virtue-signaling that places Silicon Valley ideology above American lives.
He warned that The Terms of Service of Anthropics defective altruism will never outweigh the safety, the readiness, or the lives of American troops on the battlefield, making clear that, in the administrations view, elected leaders and military commandersnot tech executivesmust retain ultimate authority over lawful military uses of emerging technologies.
Login