Trump Moves to Formally Ban Anthropic's AI From Federal Agencies Amid First Amendment Lawsuit

President Donald Trump is preparing to sign an executive order formally removing Anthropic's artificial intelligence technology from all executive branch agencies, according to sources familiar with the matter who spoke to CBS News. The order could be issued as early as this week, formalizing a directive Trump first announced on February 27 instructing federal agencies to immediately cease use of Anthropic's products. The conflict between the Trump administration and Anthropic centers on restrictions the AI company sought to impose on the military's use of Claude, its flagship AI model. Specifically, Anthropic attempted to prohibit deployment of Claude for mass surveillance operations and autonomous lethal weapons systems. The Pentagon rejected these guardrails outright, asserting that the military must retain authority to deploy the technology for any lawful purpose. Following the breakdown of negotiations, Defense Secretary Pete Hegseth designated Anthropic a supply chain risk — a classification typically applied to companies tied to foreign adversaries. The Pentagon subsequently initiated a six-month phaseout of Claude, and other federal agencies including the Treasury Department announced they were discontinuing use of Anthropic's products. Anthropoc responded aggressively on Monday, filing a lawsuit in a California federal court seeking to block both the Pentagon's supply chain risk designation and the president's directive. The company argues the administration is engaging in unconstitutional retaliation against speech protected by the First Amendment. In its filing, Anthropic warned of severe financial consequences, stating that existing federal contracts are already being canceled and that uncertainty is jeopardizing hundreds of millions of dollars in near-term revenue from private sector partnerships. The company characterized the actions as a compound threat to both its economic viability and its constitutional freedoms, arguing that absent judicial intervention, the damage will escalate significantly in the months ahead.