Trump vs Anthropic: What will happen to Claude-maker? Explaining Supply Chain Risk designation

President Donald Trump on Friday announced that he is directing all federal agencies to stop using Anthropic's AI tools

Published on: Feb 28, 2026 5:26 AM IST

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President Donald Trump on Friday announced that he is directing all federal agencies to stop using Anthropic's AI tools. Soon after the 79-year-old's order, Defense Secretary Pete Hegseth announced that he is declaring the artificial intelligence startup as a supply-chain risk. This capped a weeks-long fight between the Pentagon and Anthropic over concerns about how the military could use AI at war.

Anthropic CEO Dario Amodei looks on after a meeting with French President Emmanuel Macron during the AI Impact Summit (AFP)

“I am directing EVERY Federal Agency in the United States Government to IMMEDIATELY CEASE all use of Anthropic’s technology. We don’t need it, we don’t want it, and will not do business with them again!” Trump said in a Truth Social post. He added that there would be a six-month phaseout for the Defense Department and other agencies that use the company's products.

Supply Chain Risk

Pete Hegseth, meanwhile, slammed Anthropic and its CEO Dario Amodei. “This week, Anthropic delivered a master class in arrogance and betrayal as well as a textbook case of how not to do business with the United States Government or the Pentagon,” he wrote on X, platform formerly known as Twitter.

"Our position has never wavered and will never waver: the Department of War must have full, unrestricted access to Anthropic’s models for every LAWFUL purpose in defense of the Republic. Instead, @AnthropicAI and its CEO @DarioAmodei, have chosen duplicity. Cloaked in the sanctimonious rhetoric of “effective altruism,” they have attempted to strong-arm the United States military into submission - a cowardly act of corporate virtue-signaling that places Silicon Valley ideology above American lives."

The Defense Secretary revealed that Anthropic has been designated a Supply-Chain Risk to national security.

“Effective immediately, no contractor, supplier, or partner that does business with the United States military may conduct any commercial activity with Anthropic. Anthropic will continue to provide the Department of War its services for a period of no more than six months to allow for a seamless transition to a better and more patriotic service.”

What does the designation mean?

The Pentagon's supply-chain risk designation is typically reserved for companies in adversary nations, which means that defense contractors could be barred from deploying Anthropic's AI as part of work for the Pentagon. The defense industrial base includes tens of thousands of contractors, including major public companies.

Anthropic had won a $200 million ceiling Pentagon contract last year.

ABOUT THE AUTHOR
Yash Nitish Bajaj
Yash Bajaj is a Chief Content Producer with a strong foundation in US coverage, digital strategy, and audience-focused storytelling. As part of the US Desk at Hindustan Times, he covers a wide range of topics - from American politics to sports (NFL, NBA, derbies, MLB and more). Before joining Hindustan Times, Yash served as Deputy News Editor at Times Now, where he oversaw international coverage and led a team of six. In this role, he significantly expanded global traffic through strategic planning, SEO-driven content execution, and meticulous trend tracking across platforms. He is experienced in managing high-pressure breaking-news shifts, coordinating live coverage, and building newsroom systems that improve speed, accuracy, and reach. Prior to Times Now, Yash held a position at Opoyi, where he headed the Sports and US news team. He developed broad editorial strategies, guided reporters across multiple beats, and played a key role in recruiting and training new talent. His responsibilities also extended to social media management and experimenting with innovative content formats. A passionate NFL fan, Yash is a die-hard supporter of the Cincinnati Bengals and has followed Joe Burrow closely since his college days at LSU. Whether breaking down top players' latest performance, analyzing team performances, or tracking roster moves, he brings the same dedication and sharp storytelling to his sports coverage as he does to American politics and breaking news. When he’s not writing, Yash can often be found watching games or debating the latest NFL storylines with fellow fans. Yash holds a Bachelor of Mass Media (Journalism) from HR College, Mumbai University. His interests extend well beyond the newsroom: he is an enthusiastic explorer of AI tools, a movie buff with an ever-growing watchlist, and someone who enjoys unraveling conspiracy theories for fun.Read More

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