Trump’s Anthropic showdown rattles the AI industry

President Trump escalated his clash with AI startup Anthropic by ordering a government-wide boycott of Claude and hinting at criminal penalties, while Defense Secretary Hegseth designated Anthropic a supply-chain risk and floated using the Defense Production Act to force government access. Anthropic warned it could sue if the move threatens national security, and OpenAI signaled concern about the broader industry impact. Lawmakers urged narrowly tailored limits and hearings, underscoring a potential shift toward greater Washington dominance over AI and its implications for national security, privacy, and the tech sector’s relationship with government.