Trump Bans Anthropic from Federal Agencies; OpenAI Signs Pentagon Deal Hours Later

A Federal Ban on Anthropic

On February 27, 2026, President Donald Trump ordered every federal agency to immediately cease all use of Anthropic's technology. Defense Secretary Pete Hegseth officially designated Anthropic a supply-chain risk, giving agencies and contractors six months to fully phase out any existing business with the company.

Why Negotiations Collapsed

The dispute centered on the Pentagon's demand that Anthropic allow Claude to be used for "all lawful purposes" — a condition Anthropic refused. The company's red lines included prohibiting Claude from being used for mass domestic surveillance of American citizens or to power fully autonomous weapons systems. A contract worth up to $200 million was on the table. When a 5:01 p.m. ET deadline on February 27 passed without agreement, the government acted.

OpenAI Moves In Within Hours

Hours after the ban, OpenAI CEO Sam Altman announced a deal with the Pentagon — one that includes similar but accepted guardrails. OpenAI's three red lines prohibit its models from being used for mass domestic surveillance, directing autonomous weapons, or high-stakes automated decisions. The company pledged to deploy technical safeguards and embed personnel at the Pentagon to independently verify compliance.

Anthropic Threatens Legal Action

Anthropic said it had "not yet received direct communication" from the Pentagon or the Trump administration, and vowed to challenge the supply-chain risk designation in court. The standoff marks a defining moment in U.S. AI policy — placing Anthropic's safety principles on a direct collision course with executive branch demands for unrestricted access to frontier AI systems.

Source: NPR | CNBC