WASHINGTON, March 2 (GeokHub) - Three major U.S. cabinet agencies have moved to halt use of artificial intelligence products developed by Anthropic, aligning with earlier Pentagon guidance and marking a significant shift in federal AI procurement policy.
The Departments of State, Treasury and Health and Human Services said they would discontinue use of Anthropic’s chatbot platform Claude, following a directive from U.S. President Donald Trump.
The decision follows a breakdown in negotiations between Anthropic and the administration over limits governing how the U.S. military could deploy the company’s AI systems.
Treasury and State Move Quickly
Treasury Secretary Scott Bessent confirmed that the department would terminate all use of Anthropic products, including Claude.
The Department of Health and Human Services notified employees internally that they should transition to alternative AI platforms. A spokesperson confirmed the shift, directing staff toward rival tools such as OpenAI’s ChatGPT and Google’s Gemini.
The State Department also said it would replace Anthropic’s model powering its in-house chatbot, StateChat, with OpenAI’s GPT-4.1.
“In line with the president’s direction to cancel Anthropic contracts, we are taking immediate steps to implement the directive,” State Department spokesperson Tommy Pigott said.
Defense Tensions Over AI Guardrails
The broader policy change stems from disagreements over military guardrails. Sources familiar with the talks said the administration sought fewer restrictions on how Anthropic’s AI could be used in defense applications, including autonomous weapons systems and intelligence operations.
Anthropic had pushed for safeguards limiting military deployment and restricting potential domestic surveillance applications.
On Friday, Trump ordered a six-month phase-out of Anthropic’s products across the Defense Department and other agencies.
In contrast, rival OpenAI, backed by Microsoft and Amazon, announced a deal to deploy AI systems within the Pentagon’s classified network.
OpenAI CEO Sam Altman said the company would amend its Defense Department agreement to clarify that its AI systems would not be intentionally used for domestic surveillance of U.S. citizens.
A Major Blow to Anthropic
The move represents a sharp setback for San Francisco–based Anthropic, which counts Alphabet and Amazon among its financial backers. The company has been widely regarded as a leading U.S. developer of advanced AI systems with national security applications.
Federal agencies have traditionally reserved such sweeping bans for suppliers viewed as adversarial or foreign-controlled. Analysts say the decision could complicate Anthropic’s standing in Washington and potentially affect future government contracts.
William Pulte, director of the Federal Housing Finance Agency, also announced that his bureau and mortgage giants Fannie Mae and Freddie Mac would terminate use of Anthropic products.
