U.S. President Donald Trump has ordered all federal agencies to stop working with artificial intelligence company Anthropic, labeling it a 'supply chain risk,' according to the Pentagon. The directive requires the Defense Department and related agencies to cease using Anthropic’s technology within six months. Trump warned that full presidential authority would be used if the company failed to cooperate during the transition.

Analysts described the move as an unprecedented setback for the U.S. AI sector. Anthropic had previously contributed to national security–related AI capabilities and counts Google and Amazon among its investors. The company announced plans to challenge the Pentagon’s risk designation in court. CEO Dario Amodei recently met with Defense Secretary Pete Hegseth to express concerns about limits on AI use in weapons systems and mass surveillance. The Pentagon responded that national defense policy is determined by law, not by private firms.

The decision follows earlier U.S. actions excluding Chinese tech firm Huawei from defense supply chains. OpenAI CEO Sam Altman stated that human accountability and surveillance limits are included in its Pentagon contract, though differences from Anthropic’s proposals remain unclear.