The administration of US President Donald Trump has ordered federal agencies to suspend the use of artificial intelligence systems developed by Anthropic, a move that came just hours before OpenAI announced a major agreement with the Pentagon to deploy its technology within classified military networks. The twin developments underscore the rapidly intensifying competition to supply advanced AI systems to the US government and defence sector.
Federal agencies told to suspend Anthropic systems
According to officials familiar with the directive, the White House instructed multiple US government agencies to immediately stop using AI models developed by Anthropic while a review of security, procurement and compliance procedures takes place.
The decision reportedly affects a number of experimental AI deployments across federal departments that had been testing large language models for administrative, analytical and research purposes.
While the administration has not publicly detailed the specific concerns behind the order, analysts suggest that issues related to data security, model governance and federal contracting compliance may have contributed to the suspension.
Anthropic, one of the leading US artificial intelligence developers, has positioned itself as a safety-focused competitor in the rapidly evolving AI sector.
OpenAI announces Pentagon partnership
Shortly after news of the suspension emerged, OpenAI chief executive Sam Altman confirmed that his company had reached an agreement with the US Department of Defense to supply AI capabilities to classified military systems.
The partnership will reportedly enable OpenAI technology to operate within secure Pentagon networks, supporting tasks such as intelligence analysis, logistics optimisation and operational planning.
Although details of the agreement remain limited due to national security considerations, officials indicated that the systems would operate within tightly controlled environments designed to prevent unauthorised data exposure.
The deal marks one of the most significant integrations of commercial artificial intelligence into the US military’s digital infrastructure.
AI competition intensifies in the defence sector
The developments highlight the growing importance of artificial intelligence within national security frameworks. Governments worldwide are investing heavily in AI technologies capable of processing large volumes of data, supporting decision-making and enhancing cyber defence capabilities.
The US Department of Defense has increasingly turned to private technology companies to accelerate innovation in areas such as machine learning, autonomous systems and advanced analytics.
As a result, technology firms are competing aggressively for government contracts that could shape the future of military AI deployment.
Strategic implications for the global AI race
The suspension of Anthropic systems alongside OpenAI’s Pentagon partnership may reshape the competitive landscape within the AI industry, particularly in the government and defence segments.
Industry analysts note that access to classified or secure government networks represents a major milestone for any AI company, potentially strengthening its credibility and technological influence.
At the same time, the decision illustrates the political and regulatory pressures that increasingly accompany the deployment of powerful artificial intelligence tools.
As governments seek to balance innovation with national security concerns, the relationship between the technology sector and defence institutions is expected to become an even more significant battleground in the global AI race.
Newshub Editorial in North America – February 28, 2026
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