Defense & National Security Newsletter Trump administration goes nuclear on AI firm Anthropic by Ellen Mitchell - 02/27/26 8:11 PM ET by Ellen Mitchell - 02/27/26 8:11 PM ET Share ✕ LinkedIn LinkedIn Email Email 96 Welcome to The Hill’s Defense & NatSec newsletter {beacon} Defense & National Security Defense & National Security   The Big Story  Trump administration goes nuclear on AI firm Anthropic The Pentagon is designating Anthropic as a supply chain risk after President Trump directed all federal agencies to stop using the company’s technology in a bitter feud. © AP Photo/Julia Demaree Nikhinson “ Effective immediately , no contractor, supplier, or partner that does business with the United States military may conduct any commercial activity with Anthropic,” Defense Secretary Pete Hegseth said in a post on X.   The Pentagon chief added that the company will continue to provide its services to the Defense Department (DOD) for no more than half a year to “allow for a seamless transition to a better and more patriotic service .”    “Anthropic’s stance is fundamentally incompatible with American principles,” Hegseth said. “Their relationship with the United States Armed Forces and the Federal Government has therefore been permanently altered .”    “America’s warfighters will never be held hostage by the ideological whims of Big Tech. This decision is final ,” he added.    The move comes shortly after Trump directed federal agencies to “immediately cease” using the company’s technology. He similarly announced a six-month phase out period.    “The Leftwing nut jobs at Anthropic have made a DISASTROUS MISTAKE trying to STRONG-ARM the Department of War, and force them to obey their Terms of Service instead of our Constitution,” the president wrote in a post on Truth Social.    “ We don’t need it, we don’t want it , and will not do business with them again!” he added.  The Pentagon gave Anthropic a Friday afternoon deadline to accept its terms, delivering what it described as its last and final offer to the company Wednesday night.     Late Thursday, Anthropic CEO Dario Amodei said the company could not “in good conscience” agree .   He underscored that the company understands that the DOD and not private companies make military decisions and has never raised objections to particular operations or attempted to limit the use of its technology “in an ad hoc manner.”     “However, in a narrow set of cases, we believe AI can undermine, rather than defend , democratic values,” Amodei added. “Some uses are also simply outside the bounds of what today’s technology can safely and reliably do.”    A company spokesperson also argued in a statement Thursday that the latest language “framed as compromise was paired with legalese that would allow those safeguards to be disregarded at will.”      The supply chain risk designation would mean that the DOD’s contractors and subcontractors would be barred from using Anthropic’s services and technology. The designation is typically imposed on foreign adversaries .     The Pentagon and Anthropic have been locked in a dispute over the company’s terms of service for using its AI models.     The DOD has pushed for language that would allow the technology to be used for “all lawful purposes,” while the AI firm has argued there must be restrictions on using its models for mass domestic surveillance or fully autonomous lethal weapons.    Read the full report at thehill.com .   Welcome to The Hill’s Defense & National Security newsletter, I’m Ellen Mitchell — your guide to the latest developments at the Pentagon, on Capitol Hill and beyond.   Did someone forward you this newsletter? Subscribe here.   Essential Reads   How policy will affect defense and national security now and in the future:   Trump says he is ‘not happy’ with the Iran nuclear talks but indicates he’ll give them more time TEL AVIV, Israel (AP) — U.S. President Donald Trump said Friday he’s “not happy” with the latest talks over Iran’s nuclear program but indicated he would give negotiators more time to reach a deal to avert another war in the Middle East. He spoke a day after U.S. envoys held another inconclusive round of indirect talks with Iran in Geneva. As American forces gather in the region, Trump has threatened military action …  Full Story   US authorizes departure of nonemergency personnel from Jerusalem ahead of possible Iran strike The State Depa