Why Trump-Anthropic Row Puts US' Defense Production Act In Spotlight?

Washington: US President Donald Trump ordered federal agencies to ditch Anthropic's AI technology following a public dispute on Friday, a day after Anthropic CEO Dario Amodei said it would not accede to the Pentagon's request to eliminate safeguards from its AI systems citing concerns over autonomous weapons and mass surveillance.

This raises questions on the threshold up to which an US President can compel technology in the name of national security. The Defence Production Act of 1950 (DPA) is posited at the core of these concerns. 

Trump's Feud With Anthropic

The focal point of the AI firm's dispute with the Trump administration was hinged on whether the military should have unrestricted access to Anthropic’s systems and AI tech. The company sought a guarantee that its tools would not be used for mass surveillance or fully autonomous weapons systems.

Trump gave the Pentagon 6 months to phase out Anthropic's tech. This is also being construed as a warning to Google and OpenAI, which also have military contracts.

The Pentagon had given Anthropic until 5.01 pm local time on Friday to agree to its demands, threatening to designate the company a supply chain risk if it refused. Anthropic's refusal to compromise has garnered support from tech workers and industry leaders, including OpenAI CEO Sam Altman, who questioned the Pentagon's threatening approach.

Here's What Donald Trump Said

In a post on Truth Social, Trump said: “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!”

“The United States of America will never allow a radical left, woke company to dictate how our great military fights and wins wars!” he wrote. “That decision belongs to your Commander-in-Chief, and the tremendous leaders I appoint to run our military.”

"The company’s actions were putting American lives at risk, our Troops in danger, and our National Security in jeopardy," he further said.

What Is The Defense Production Act

The Defense Production Act of 1950 is a Cold War–era statute which grants US government the power to compel private companies to prioritise defence needs.

Previously the DPA had been invoked by former US President Joe Biden in 2023 to prevent essential medicine supply shortage that could have an impact on how the nation responded to health emergencies. It had also been invoked by Trump in his first term as the US President, during the pandemic. Biden had also used it in an attempt to regulate AI, requiring companies to share safety test results and other relevant information with the government.

Since Anthropic is an artificial intelligence firm, it would fall under the category of private businesses which in turn comes within the scope of DPA. However, the law does not allow the president to seize full control over every aspect of any company's functionality. It can only require companies to prioritise government contracts when it comes down to national defense.

'Supply-Chain Risk To National Security'

US Defence Secretary Pete Hegseth had threatened earlier that the Department of War will officially designate Anthropic a “supply-chain risk to national security" if they do not give in to the Trump administration's demands.

"The Department of War must have full, unrestricted access to Anthropic’s models for every LAWFUL purpose in defense of the Republic," he said in a post on X.

However, Anthropic refused to back down. “No amount of intimidation or punishment from the Department of War will change our position on mass domestic surveillance or fully autonomous weapons. We will challenge any supply chain risk designation in court,” the AI company's statement read. “Second, we believe that mass domestic surveillance of Americans constitutes a violation of fundamental rights,” Anthropic added.

Also read: US Administration To Phase Out Anthropic Technology Following Trump's Order Amid Pentagon Dispute