On February 27, 2026, President Trump directed federal agencies to cease using Anthropic's Claude, and Defense Secretary Pete Hegseth designated Anthropic a supply chain risk to national security. The conflict arose after Anthropic refused to remove contractual prohibitions on Claude's use for mass domestic surveillance of Americans and fully autonomous weapons. Anthropic filed federal lawsuits on March 9 challenging the designation. The case concerns whether private AI companies may impose ethical limits on government use of their technology.