US President Donald Trump said on Friday that he is ordering all federal agencies to stop using Anthropic’s technology due to the company’s controversy over the security of Artificial Intelligence (AI).
Trump’s comments come after Anthropic stopped the Pentagon from allowing unrestricted military use of its AI technology. Company CEO Dario Amodei had said that his company cannot trade its soul for the demands of the Defense Department.
Orders to stop using Anthropic’s AI technology
According to the AP report, Trump said that federal agencies must immediately stop using Anthropic’s AI, but he gave the Pentagon six months to phase out this technology already present in military platforms. They said we don’t need it, we don’t want it and we will never do business with them again.
Chatbot Grok may benefit
There were differences in the defense contract over the role of AI in national security and how machines with increasing capabilities could be used in serious cases involving sensitive information or government surveillance. The move is likely to benefit Elon Musk’s competing chatbot Grok, which the Pentagon plans to provide access to confidential military networks.
Losing this contract is not a big deal for chatbot cloud maker Anthropic, but the ultimatum given by US Defense Secretary Pete Hegseth this week has created widespread risks for the company. This is a wake-up call for the company’s unprecedented growth from a small computer science research lab in San Francisco to one of the world’s most valuable startups.
Military officers had threatened
Military officials had said that they would not only cancel Anthropic’s contract but would also declare them a threat to the supply chain. This designation is usually given to foreign companies, which may hinder the company’s important partnerships with other businesses. However, Trump did not say anything like this in his statement on Friday. But it did say that if Anthropic does not cooperate during the phaseout period, it could face serious civil and criminal consequences.
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