Anthropic Stock Faces Uncertainty After Trump Orders Federal Agencies to Stop Using Company Tools

President Donald Trump has ordered every federal agency to immediately stop using technology from AI developer Anthropic, a directive that directly affects anthropic stock by removing government usage and setting a six-month phase-out for the company’s tools. The move follows a public dispute over access and controls that has escalated into a potential supply-chain designation and legal fight.

Anthropic Stock: Immediate Market and Contract Fallout

The president said Anthropic's tools will be phased out of all government work over the next six months. That directive removes the company’s existing government deployments — including work in classified agencies — and introduces uncertainty for anthropic stock as government contracts and agency deployments are withdrawn or transitioned.

Supply Chain Risk Designation and Legal Pushback

Defense leadership has deemed Anthropic a "supply chain risk, " a label that would be the first public use of this treatment for a U. S. company. The defence secretary announced the plan to designate the company immediately, which would prohibit any business working with the military from engaging in "any commercial activity with Anthropic. " The company has said it will challenge any supply chain risk designation in court and called the designation legally unsound and a dangerous precedent for American firms that negotiate with the government.

Escalation: Social Media Posts, Public Exchanges and Private Talks

Both President Trump and the defence secretary announced their decisions on social media, after days of back-and-forth in public and private between Anthropic’s CEO Dario Amodei and the defence secretary. The president wrote that "We don't need it, we don't want it, and will not do business with them again!" and later issued a warning that Anthropic must cooperate during the phase-out period or face the "Full Power of the Presidency" with "major civil and criminal consequences to follow. "

Company Concerns: Surveillance, Autonomous Weapons and Negotiation Stance

Anthropic has grown concerned about potential government uses of its tools, including the risk of what it described as "mass surveillance" and deployment in "fully autonomous weapons. " The company has repeatedly resisted demands that it agree to give the military unfettered access, while the defence leadership and the Pentagon have insisted Anthropic must accept "any lawful use" of its tools and technology. Anthropic stated that "No amount of intimidation or punishment from the Department of War will change our position on mass domestic surveillance or fully autonomous weapons, " using a secondary name the president has given to the defence department.

Operational Impact on Customers and Transition Plans

Anthropic noted that the immediate impact of the directive will primarily affect companies that also contract with the military; those firms may have to stop using Anthropic for work done on behalf of the defence department. Anthropic said it had previously committed that if the Department of Defense chose to stop using its tools, the company would "work to enable a smooth transition to another provider. " On the status of negotiations, Anthropic said it had yet to hear anything directly from the White House or the military on the matter.

Background: Government Use and Support Before the Decision

Anthropic’s tools have been in use by the U. S. government and military since 2024, and the company had been the first advanced AI firm to have its tools deployed in government agencies doing classified work. Prior to the president’s pronouncement, Anthropic had received public support for its stance resisting certain government demands. The unfolding designation and legal responses set the stage for a prolonged dispute that will determine how, and whether, Anthropic’s technology continues to be used by government customers.

Recent developments indicate the situation remains fluid and that further legal and administrative steps are likely as both sides press their positions.