US Treasury Terminates All Use of Anthropic AI

US Treasury Cuts Ties with Anthropic

The US Treasury Department has announced the termination of all Anthropic AI product usage, becoming the latest federal agency to comply with the Trump administration's executive order targeting the AI safety company. This follows the Department of Defense's designation of Anthropic as a supply chain risk entity.

Background of the Conflict

The dispute began when the Pentagon requested Anthropic's assistance with AI-powered military surveillance programs. Anthropic refused, citing conflicts with its core AI safety principles and acceptable use policies. President Trump responded by labeling Anthropic a radical left woke company and ordering immediate cessation of Anthropic technology use across federal agencies.

Cascading Impact Across Government

The Treasury's decision follows similar announcements from other federal departments. The situation represents an unprecedented standoff between a major AI company and the US government over the ethical limits of AI deployment in military and surveillance applications. The broader AI industry is watching closely as the outcome could set significant precedents for how AI companies navigate government contracts and ethical boundaries.

Anthropic's Response

Rather than capitulate, Anthropic has announced it will legally challenge the Pentagon's supply chain risk designation in court — an extraordinary step for an AI company. Meanwhile, the controversy has driven a public backlash against OpenAI, which accepted a similar Pentagon contract, causing a surge of users switching to Claude.