Trump orders immediate ban on Anthropic across US federal agencies, six-month phase-out for DoD use

U.S. President Donald Trump has directed all federal agencies to immediately stop using Anthropic’s AI (Claude) and ordered a six-month phased wind-down for agencies already using it, including the Department of Defense. The administration warned Anthropic to cooperate during the phase-out or face full presidential enforcement and potential civil or criminal consequences. The Defense Department separately barred military contractors, suppliers and partners from commercial dealings with Anthropic. Senior Senate defense leaders — including Sens. Roger Wicker, Jack Reed, Mitch McConnell and Chris Coons — have privately pushed Anthropic and the Pentagon to resolve disputes over limits on Claude’s use in classified and sensitive environments; negotiations remain ongoing and an agreement remains possible. The action follows a public standoff over Anthropic’s refusal to remove safety constraints in Claude that would permit certain military uses. Market note for traders: this swift government ban creates immediate regulatory and contract risk for Anthropic and may raise scrutiny across AI providers; monitor defense contracting news, potential legal escalations, and sector-wide policy spillovers that could affect valuations of AI-focused firms and tokens tied to enterprise AI adoption.