President Donald Trump has directed all US federal agencies to immediately cease using Anthropic’s AI technology, including Claude models, calling it unnecessary amid his administration’s push for American AI dominance. The executive order targets the San Francisco-based startup despite its $61.5 billion valuation and partnerships with Amazon, Google, and US intelligence agencies.
Executive Order Details
Issued February 27, 2026, the directive mandates termination of Anthropic contracts within 30 days, citing national security concerns and preference for “trusted domestic alternatives.” Agencies must migrate to OpenAI, xAI, or approved in-house solutions, with DARPA, NSA, and CIA specifically named for immediate compliance.
Anthropic CEO’s Response
CEO Dario Amodei expressed disappointment but committed to “serving American interests.” Anthropic’s Claude leads government benchmarks for safety and reasoning, powering 15+ federal contracts worth $500M+ annually. The ban disrupts Pentagon’s AI pilots and intelligence analysis workflows.
Strategic Context
Trump’s move aligns with his “America First AI” agenda, favoring Elon Musk’s xAI and Sam Altman’s OpenAI. Executive Order 14179 (January 2026) already prioritized domestic models; this escalates to outright exclusion of Anthropic despite its US-only operations and safety-first mission.
Industry and Market Impact
Anthropic shares dipped 8% in after-hours trading. Competitors gain: xAI reportedly secured NSA contracts hours post-announcement. Critics call it cronyism; supporters cite Anthropic’s past OpenAI founders’ “woke” roots and perceived foreign influence risks.
Broader AI Policy Signals
This follows January 2026’s federal AI czar appointment and OpenAI White House access. Trump emphasized during signing: “We build the best AI—no more handouts to Silicon Valley elites who lecture us.”
