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US govt agencies move to cease Anthropic use after recent dispute

by Reuters

WASHINGTON Mar 03, 2026 - 11:59 am GMT+3
The U.S. Department of War and Anthropic logos are seen in this illustration, March 1, 2026. (Reuters Photo)
The U.S. Department of War and Anthropic logos are seen in this illustration, March 1, 2026. (Reuters Photo)
by Reuters Mar 03, 2026 11:59 am

Top U.S. government agencies, including the Departments of State, Treasury, and Health and Human Services (HHS), said they stopped using Anthropic's AI products on Monday, joining ⁠the Pentagon in switching to rivals such as OpenAI under a new White House directive following the recent dispute over the use of its services for military purposes.

The federal government's widening boycott of Anthropic and its language-trained chatbot platform Claude marked a rebuke ​by Washington to a leading company that had kept the U.S. at ​the ⁠forefront of national security-critical AI.

President Donald Trump ordered all U.S. government agencies to phase out their use of Anthropic, declared a supply-chain risk by the Defense Department, a label that could reduce it to a pariah status typically reserved for enemy suppliers.

Following suit on Monday, U.S. Treasury Secretary Scott Bessent said in a post on X that his department was terminating all use of Anthropic products, including Claude.

Separately, HHS notified its employees in a message obtained by Reuters, and urged them to use other AI platforms instead, such as ChatGPT and Gemini. HHS did not immediately respond to a Reuters request for comment.

The U.S. State Department likewise said it was switching the model powering its in-house chatbot, StateChat, to OpenAI ⁠from Anthropic, ⁠according to a memo seen by Reuters.

"For now, StateChat will use GPT4.1 from OpenAI," it said, adding that further information would come later.

"In line with the president’s direction to cancel Anthropic contracts, we are taking immediate steps to implement the directive and bring our programs into full compliance," State Department spokesperson Tommy Pigott told Reuters in an email.

Also on Monday, William Pulte, director of the Federal Housing Finance Agency, said in a post on X that his bureau and mortgage agencies Fannie Mae and Freddie Mac were terminating all use of Anthropic products.

On Friday, Trump ordered a six-month phase-out ⁠for the Defense Department and other agencies using products from Anthropic, whose financial backers include Alphabet's Google and Amazon.com.

The moves dealt a major blow to the San Francisco-based artificial intelligence startup following a standoff in contract talks with the Pentagon over technology ​guardrails, and whether the government or industry decides how AI is deployed.

The Trump administration has been at ​odds with Anthropic over safeguards to prevent the U.S. military and intelligence agencies from using its AI technology to target weapons autonomously and conduct U.S. domestic surveillance, according to sources familiar with ⁠the negotiations.

Late ‌on Friday, rival ‌OpenAI, which is backed by Microsoft, Amazon and others, announced its ⁠own deal to deploy technology in the Defense Department's classified ‌network.

In a posting to X on Monday, CEO Sam Altman said OpenAI would "amend" its DOD deal to make clear ​that its AI system would not be "intentionally ⁠used for domestic surveillance of U.S. persons and nationals."

He added that the department ⁠understood the limitation to "prohibit deliberate tracking, surveillance or monitoring of U.S. persons or nationals, including through ⁠procurement or use of commercially ​acquired personal or identifiable information."

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  • Last Update: Mar 03, 2026 2:38 pm
    KEYWORDS
    technology artificial intelligence us government anthropic openai
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