Trump orders US government to cut ties with Anthropic; Hegseth declares supply chain 'risk' – ABC News – Breaking News, Latest News and Videos

Trump orders US government to cut ties with Anthropic; Hegseth declares supply chain ‘risk’  ABC News – Breaking News, Latest News and Videos

Defense Secretary Pete Hegseth declared the AI company a supply chain risk. The AI company said being designated a supply chain risk is "legally unsound." President Donald Trump ordered U.S. government agencies to stop using Anthropic's products, and Defense Secretary Pete Hegseth later designated the AI company a national security "supply-chain risk" — amid a dispute with the Pentagon that hit a deadline Friday. Following a 5 p.m. deadline for the company to agree to the Pentagon's terms, Hegseth posted a statement on social media saying he's moved to designate the company a supply chain risk –a designation usually reserved for foreign adversaries — telling every defense contractor they can't use the company's AI.

"America's warfighters will never be held hostage by the ideological whims of Big Tech," Hegseth said. "This decision is final." He said the company will continue to provide the department its services for up to six months "to allow for a seamless transition" to a different service. In a statement after the deadline Friday, Anthropic said it has not received "direct communication" from either the Pentagon or the White House on the status of the negotiations. Leading up to the Friday deadline, the AI company's CEO had made clear that despite threats from the Pentagon, they refuse to drop their two key demands: no use of