WASHINGTON, Feb 28 : Anthropic PBC’s rapid ascent in the artificial intelligence race has hit turbulence after the Trump administration moved to restrict its access to federal business, casting uncertainty over the startup’s future growth.
In a pair of directives issued Friday, President Donald Trump ordered federal agencies to discontinue use of Anthropic’s AI tools, while the Defense Department classified the company as a supply chain risk. The designation, typically applied to firms tied to adversarial nations, could significantly widen the impact beyond direct government contracts.
Defense Secretary Pete Hegseth stated that any contractor or partner working with the US military would be barred from commercial dealings with Anthropic. The move follows a dispute between the Pentagon and the San Francisco-based AI developer over safeguards governing the use of its Claude chatbot.
Industry analysts say the Pentagon Anthropic AI ban could open doors for competitors such as OpenAI, Google and xAI to capture federal contracts previously awarded to Anthropic. However, legal experts caution that if the restrictions extend beyond defense procurement into broader commercial partnerships, the consequences could be severe for the company and its investors.
Anthropic, founded in 2021 by former OpenAI employees and led by CEO Dario Amodei, is reportedly preparing for a potential public offering. The company has attracted attention for its Claude AI assistant and recently secured major funding, pushing its valuation to an estimated $380 billion.
In a sharply worded statement, Anthropic described the government’s action as legally flawed and vowed to challenge the designation in court. The firm reiterated its refusal to permit its technology to be used for mass domestic surveillance or fully autonomous weapons systems.
While the Defense Department previously signed agreements with Anthropic, public contracting data indicates that actual payments have been limited. Observers note that a legal battle could delay enforcement if courts issue temporary relief, though the broader policy implications for the AI sector remain unclear.
The decision has unsettled technology companies that rely on Anthropic’s coding tools, with some executives warning that restricting access could hamper innovation and weaken US competitiveness in the global AI landscape.