Last week, U.S. President Donald Trump directed federal agencies to stop using artificial intelligence tools developed by Anthropic. The move followed ai-defense-race">a dispute between the White House and the AI company over military access to its technology. However, reports indicate the U.S. military still relied on Anthropic’s Claude AI during airstrikes in Iran despite blacklisting it.
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Trump Directs Phaseout of Anthropic AI
On Feb. 27, Trump ordered federal agencies to “IMMEDIATELY CEASE” using Anthropic’s technology and that the government would no longer do business with the company. He later shifted the directive to a six-month phaseout. The order followed escalating tensions between the AI firm and the Department of Defense (DoD).
Leading the dispute is the Pentagon’s demand that Anthropic agree to “any lawful use” of its technology, a condition outlined in a January memo from Defense Secretary Pete Hegseth. Anthropic CEO Dario Amodei rejected the updated terms, saying the company could not agree in good conscience. Amodei stated that while Anthropic had not objected to specific military operations, it opposed certain broader uses of its tools.
After negotiations stalled, Hegseth said Anthropic would be designated a “supply chain risk,” a classification that could limit contractors working with the military from engaging in commercial activity with the company. Anthropic doubled down, stating it would challenge any such designation in court. The company also noted that it had not received direct confirmation from the White House or the Pentagon on the final status of discussions.
Military Relies on Claude During Iran Strikes
Despite the phaseout order, the U.S. military reportedly used Claude AI during airstrikes in Iran. The technology helped with intelligence assessments and target identification, supporting planning and execution of the operations. Its use just hours after the directive highlights the military’s ongoing reliance on the AI.
Anthropic said it would ensure a smooth transition to another provider if the DoD offboards its tools, avoiding disruption to ongoing operations. Contractors working with the Pentagon may need to stop using Claude for military-related projects, while other customers remain unaffected.
In use by U.S. government agencies since 2024, Claude was the first advanced AI deployed in classified operations, demonstrating its central role in federal AI work.
Is Anthropic on the Stock Market?
Anthropic is a private company, meaning its shares are not publicly traded on exchanges yet. However, the AI company has revealed plans for an initial public offering (IPO) sometime in 2026, which would allow external investors to gain exposure to its stock.
