Anthropic Stock; anthropic stock at center as Trump orders agencies to stop using Anthropic AI tools
anthropic stock appears in headlines as US President Donald Trump said he would direct every federal agency to immediately stop using technology from AI developer Anthropic. The move followed a dispute over the company’s refusal to give the US military unfettered access to its tools.
Anthropic Stock and government ban
Trump wrote on Truth Social: "We don't need it, we don't want it, and will not do business with them again!" He said Anthropic's tools will be phased out of all government work over the next six months. Trump also used a secondary name for the defence department, calling it the Department of War in comments tied to the dispute.
Pentagon view and supply risk
US Defence Secretary Pete Hegseth has said he has deemed Anthropic a "supply chain risk. " Hegseth said on X that Anthropic would be "immediately" designated a supply chain risk, a label that would prohibit any business working with the military from "any commercial activity with Anthropic. " The label would make Anthropic the first US company to ever publicly receive such treatment.
Company refusal and key concerns
Anthropic refused demands that it agree to give the US military unfettered access to its AI tools. it had grown concerned about the government potentially using its AI tools, like Claude, in what it described as "mass surveillance" and "fully autonomous weapons. " The Pentagon and Hegseth have insisted that Anthropic agree to "any lawful use" of its tools and technology.
Legal challenge and company statements
Anthropic said it "will challenge any supply chain risk designation in court. " The company added that being designated a supply chain risk "would both be legally unsound and set a dangerous precedent for any American company that negotiates with the government. " Anthropic also said it had yet to hear anything directly from the White House or the military "on the status of our negotiations. "
Back-and-forth between leaders
Trump's directive came after days of back and forth, in public and private, between the company's CEO Dario Amodei and Hegseth. Both Trump and Hegseth announced their decisions on social media. Trump later berated the company on Truth Social, writing that Anthropic "better get their act together, and be helpful during this phase out period, or I will use the Full Power of the Presidency to make them comply, with major civil and criminal consequences to follow. "
Customers, transition and prior use
Anthropic said the only impact on its other customers will be on companies that also contract with the military; those companies may have to stop using Anthropic for work being done on behalf of the department. Prior to Trump's pronouncement, Anthropic had said that, if the US Department of Defense chose to stop using the company's tools, the company would "work to enable a smooth transition to another provider. " Anthropic has been in use by the US government and military since 2024 and was the first advanced AI company to have its tools deployed in government agencies doing classified work. Prior to Trump's decision on Friday, Anthropic received support in its stance against the government.
Throughout the dispute Anthropic maintained that "No amount of intimidation or punishment from the Department of War will change our position on mass domestic surveillance or fully autonomous weapons, " reaffirming the company's resistance to certain military and domestic applications.
All parties have used social media to announce positions, and the immediate legal and operational consequences of the supply chain risk label remain a contested issue between Anthropic, the defence department leadership, and the White House.
