President Donald Trump has directed all US federal agencies to immediately cease the use of artificial intelligence products developed by Anthropic PBC, escalating a high-profile dispute between the company and the Pentagon over safeguards and usage restrictions. The decision threatens to disrupt up to $200m in government work previously awarded to Anthropic, spanning military and civilian contracts, including engagements with the State Department. The strategy also encourages selecting AI systems “free from usage policy constraints” that could limit lawful military applications. Until recently, it was the only AI provider authorized to operate within certain classified Pentagon cloud environments. Beyond the immediate contractual implications, the episode underscores broader tensions between Silicon Valley and Washington over the governance of powerful AI systems.

Source: Daily News Egypt February 27, 2026 22:16 UTC