Trump Orders US Agencies to Drop Anthropic After Pentagon Feud

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Feb 27, 2026

Eric Weiner, Bloomberg News senior editor who covers equities and market moves, breaks down today's market drama. He discusses market reactions to the Anthropic-Pentagon clash and how AI funding and private-credit strains ripple through stocks. Short takes on bank risks, valuation uncertainty in private AI deals, and the potential labor-market impact of automation.

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INSIGHT

White House Orders Agencies To Drop Anthropic

President Trump ordered all federal agencies to cease using Anthropic's technology, citing a feud over the company's safeguards and a six-month phase-out.
The dispute centers on Anthropic refusing use for mass surveillance and fully autonomous weapons, which the Pentagon said it needed flexibility on.

INSIGHT

Removing Claude From DoD Is Technically Hard

Katrina Manson says unwinding Anthropic from classified and DoD systems will be complex because Claude is embedded across intelligence and combat support systems.
Anthropic offered to help transition and collaborate on R&D to improve reliability if removal is chosen.

INSIGHT

LLMs Are Adopted Fast But Still Unreliable

Military and intelligence adopted LLMs rapidly after ChatGPT but find them unreliable; Anthropic secured classified cloud access and is integrated into enterprise workflows.
That integration speeds tasks and bureaucracy but creates dependency and risk if access is cut.

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President Donald Trump directed US government agencies to stop using Anthropic PBC’s products, capping a feud between the artificial intelligence giant and the Pentagon over safeguards on its technology.

Trump said Friday that there would be a six-month “phase out period” for agencies including the Defense Department that are using Anthropic’s products.
“The Leftwing nut jobs at Anthropic have made a DISASTROUS MISTAKE trying to STRONG-ARM the Department of War, and force them to obey their Terms of Service instead of our Constitution,” the president posted on social media. “Therefore, I am directing EVERY Federal Agency in the United States Government to IMMEDIATELY CEASE all use of Anthropic’s technology.”
Spokespeople for Anthropic didn’t immediately respond to requests for comment.

Hegseth had given Anthropic until 5 p.m. on Friday to allow the Pentagon to use the Claude chatbot for any means necessary, within legal limits. The company had insisted that Claude not be used for mass surveillance against Americans or in fully autonomous weapons operations.

Trump’s decision will send a shockwave through Silicon Valley, where tech firms have invested billions of dollars on artificial intelligence and are weighing how best to handle federal government contracting. The move takes aim at a company that’s leading development of AI, a centerpiece of Trump’s economic agenda.

Today's show features:

Bloomberg News Reporter covering technology and national security Katrina Manson, on President Donald Trump directing US government agencies to stop using Anthropic's products due to a feud over safeguards on its technology
Robert Reffkin, Founder, Chairman and CEO of Compass International Holdings, and Varun Krishna, President and CEO of Rocket Companies, on a three-year strategic alliance aimed at expanding home listing inventory to create an enhanced affordable home buying and selling experience for American families
Luis von Ahn, Co-Founder, Chairman, President & CEO of Duolingo, on earnings and the struggles of the language learning platform in the era of AI-related disruption
Bloomberg News Senior Editor, Equities Americas Eric Weiner, recapping the worst trading month since March 2025

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