White House Eyes Executive Order to Remove Anthropic's Claude AI from Federal Systems

Federal Agencies to Remove Anthropic AI Systems

Overview The White House is preparing an executive order to direct federal agencies to remove Anthropic's artificial intelligence systems from government operations. The move, which could be issued as early as this week, marks an escalation in the administration's dispute with the AI startup.

Background The dispute stems from the US Department of Defense's recent designation of Anthropic as a "supply chain risk," a classification historically reserved for foreign adversaries. This designation requires defense contractors to certify that they do not use Anthropic's models in work performed for the Pentagon. Anthropic has filed a lawsuit challenging the Pentagon's decision, arguing that the government's actions are unlawful and unprecedented.

Government Action Government agencies have already begun phasing out Anthropic's technology from internal systems. The US Department of the Treasury and other departments have started the process of offboarding Anthropic products. The administration has argued that certain "safeguards" embedded in Anthropic's AI models could pose national security risks if private companies were able to influence military operations or battlefield decisions.

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Impact on Anthropic The consequences of the government's decision could be severe, according to Anthropic's complaint. The company's contracts with the federal government are already being canceled, and current and future contracts with private parties are in doubt, jeopardizing hundreds of millions of dollars in the near-term.

Precedent There is limited precedent for a presidential order singling out a specific American technology firm outside established procurement rules. However, the administration has targeted foreign technology companies on national security grounds, including restrictions on Chinese telecommunications groups and actions affecting Huawei and TikTok.

Litigation Anthropic has asked the court to vacate the Pentagon's designation and grant a stay while the legal challenge proceeds. The company argues that federal procurement law does not give the administration authority to blacklist a domestic company based on its speech or corporate policies.