Trump Bans Anthropic, Shakes Silicon Valley, OpenAI Shows Rare Support

What kind of event could bring OpenAI and Anthropic, fierce competitors, onto the same side? This Friday, former President Trump posted on social media, accusing AI company Anthropic of attempting to “coerce” the Pentagon into accepting its terms and instructing all federal agencies to immediately stop using its products. Shortly after, U.S. Secretary of Defense Hagerty labeled Anthropic a “national security supply chain risk,” effectively barring any contractors from working with the company.

Legal experts called this unprecedented—historically, such measures only applied to foreign companies deemed security risks. If upheld, it could seriously disrupt Anthropic’s operations, making other businesses hesitant to use its AI model, Claude. Since Anthropic relies entirely on cloud providers like AWS and Google Cloud for training and running models, the directive puts these giants in a tough spot: billions in defense contracts versus providing AI hosting, and the Pentagon’s priority is clear. Anthropic has indicated potential legal action, but assured that customer operations remain unaffected.

The controversy stems from Anthropic’s disagreement with the Pentagon over the use of advanced AI in military applications. Anthropic holds a $200 million contract, with Claude integrated into certain military systems, including classified networks. However, the Pentagon demanded “unrestricted access” to the AI systems, which Anthropic refused. Trump personally intervened, issuing a comprehensive ban on February 27 with a six-month transition period, threatening “serious civil and criminal consequences” if Anthropic failed to comply.

The tech world erupted. Previously criticized for accusing rivals of “model distillation,” Anthropic now received public backing from major players like OpenAI and Google. Most notably, OpenAI CEO Sam Altman voiced support—even with intense commercial rivalry, the companies stood together against Pentagon pressure. Altman emphasized that the issue goes beyond Anthropic—it’s about industry ethics: AI must not be used for mass surveillance or autonomous lethal weapons, and high-risk decisions must always involve human oversight.

Employees also rallied. Hundreds of OpenAI and Google staff signed an open letter, “We Will Not Be Divided,” expressing strong support for Anthropic and urging leadership to maintain ethical standards, rather than exploiting competition to sow division. Such cross-company solidarity is rare in the AI industry.

Not all companies took the same stance. Elon Musk’s xAI agreed to the Pentagon’s terms, potentially taking over some military AI contracts. Meanwhile, xAI co-founder Toby Pohlen resigned, planning to rest, reflect, and chart his next steps.

Currently, the Anthropic crisis remains unresolved. The Pentagon has agreed to OpenAI’s “secure deployment in classified environments” framework, though contracts are pending; Anthropic’s major deals may shift to OpenAI. The outcome of this showdown could fundamentally reshape the tech industry landscape.