Washington DC - Defense Secretary Pete Hegseth ordered the designation of Anthropic as an official Supply-Chain Risk to National Security after the AI startup refused to make its AI technology fully available to the Pentagon.

Effective immediately, contractors, suppliers, and partners of the US military are barred from doing business with the company, Hegseth said in a statement accusing it of "arrogance and betrayal" for defying the ultimatum he set.

Anthropic may continue providing services to Pentagon for up to six months to allow a transition to a "better and more patriotic" service.

The move follows an order from President Donald Trump instructing all federal agencies to stop using Anthropic technology.

"I am directing EVERY Federal Agency in the United States Government to IMMEDIATELY CEASE all use of Anthropic's technology. We don't need it, we don't want it, and will not do business with them again," Trump said on his Truth Social platform.

He said that a six-month transition period should apply to agencies such as the Department of Defense that have been using Anthropic technology.

Trump called Anthropic a "radical left, woke" company and warned of "major civil and criminal consequences to follow" if the tech giant does not bow to his demands.

At the heart of the debate is Anthropic's insistence that the company's artificial intelligence must not be used for mass surveillance in the US or in fully autonomous weapons.

Co-founder and chief executive Dario Amodei Amodei warned that AI is not yet reliable enough to be used in fully autonomous weapons.

He told CBS News that Anthropic was still willing to work with the Pentagon, "as long as it is in line with our red lines."