Multiple United States government departments are discontinuing the use of artificial intelligence tools developed by Anthropic and are transitioning to rival platforms like OpenAI and Google . This major US government AI shift follows a directive from President Donald Trump, who ordered federal agencies to stop working with the San Francisco-based AI startup . The policy change impacts several key cabinet departments, including the State Department, the Treasury Department, and Health and Human Services .
State and Treasury Departments Lead the Transition
The immediate transition is already underway across federal offices as officials follow the new presidential guidelines . The State Department is updating its internal chatbot system, known as StateChat, to operate on OpenAI’s GPT-4.1 model instead of Anthropic’s Claude platform . State Department spokesperson Tommy Pigott confirmed the transition in an email, stating that the agency is taking immediate steps to implement the presidential directive and bring its programs into full compliance . Further details regarding the State Department’s long-term artificial intelligence strategy are expected to be released at a later date .
Concurrently, leadership at other major agencies issued similar directives to their staff . Treasury Secretary Scott Bessent announced on the social media platform X that his department is ending all use of Anthropic technology, including the Claude chatbot . Bessent emphasized that the public deserves confidence that government tools serve the public interest, adding that under the current administration, no private company will dictate national security terms .
Health and Human Services also notified its employees about the ban through an internal message . The department instructed its workforce to utilize alternative artificial intelligence platforms, specifically recommending OpenAI’s ChatGPT and Google’s Gemini . A spokeswoman for Health and Human Services officially confirmed the agency’s decision to drop Anthropic .
Federal Housing and Defense Implement AI Bans
The phase-out extends beyond standard cabinet departments into federal housing and mortgage sectors . William Pulte, the director of the Federal Housing Finance Agency, announced that his bureau is terminating its relationship with Anthropic . Pulte noted that major United States mortgage agencies, including Fannie Mae and Freddie Mac, are also abandoning the company’s products .
President Trump’s executive order mandates a six-month phase-out period for the Defense Department and other federal agencies currently using Anthropic’s software . Following the president’s directive, the Pentagon announced it would officially declare the artificial intelligence startup a supply-chain risk . This designation represents an extraordinary rebuke by Washington against a premier technology company, threatening to assign Anthropic a pariah status typically reserved for foreign enemy suppliers .
Disputes Over Military AI Guardrails
The abrupt cancellation of federal contracts stems from significant disagreements between the Trump administration and Anthropic regarding the implementation of safety guardrails . The central dispute involved whether the government or private industry should control how artificial intelligence is deployed in national security contexts . According to sources familiar with the negotiations, the administration and the company clashed over safeguards designed to prevent military and intelligence agencies from using the technology to target weapons autonomously . The two sides also disagreed on rules regarding the use of AI for conducting domestic surveillance .
OpenAI Expands Federal Partnerships
As Anthropic faces a massive loss of government business, rival companies are stepping in to fill the void . OpenAI, which receives backing from tech giants like Microsoft and Amazon, recently announced a new agreement to deploy its technology within the Defense Department’s classified network . Anthropic is also backed by major corporations, including Amazon and Alphabet’s Google, but it is now losing ground to these competitors in the federal sector .
OpenAI Chief Executive Officer Sam Altman publicly addressed the company’s evolving relationship with the military . In a post on X, Altman clarified that OpenAI is working with the Defense Department to amend their agreement and establish clear operational principles . He stated that the updated contract explicitly prohibits the AI system from being intentionally used for the domestic surveillance of United States citizens or nationals .
Altman further explained that the Defense Department understands these limitations, which ban the deliberate tracking or monitoring of individuals using commercially acquired identifiable information . Additionally, the revised agreement ensures that OpenAI’s services will not be utilized by specific defense intelligence agencies, such as the National Security Agency, without a separate, follow-on modification to the contract .
Highlighting his broader vision for artificial intelligence in the public sector, Altman emphasized the principles of alignment, democratization, empowerment, and individual agency . He argued that the democratic process must remain in control of technology and that no single private company should decide the fate of the world . By working directly with governments, Altman believes the industry can democratize AI while ensuring that individual citizens gain increasing power and representation .
