Three more U.S. cabinet-level agencies, the departments of State, Treasury, and Health and Human Services, are going to stop the use of Anthropic’s AI products, joining the Pentagon in switching to rivals like OpenAI (OPENAI) under a new White House order, Reuters reported.
Treasury Secretary Scott Bessent said in a post on X that his department was terminating all use of Anthropic products.
“At the direction of @POTUS, the @USTreasury is terminating all use of Anthropic products, including the use of its Claude platform, within our department,” said Bessent. “The American people deserve confidence that every tool in government serves the public interest, and under President Trump no private company will ever dictate the terms of our national security.”
Separately, the Department of Health and Human Services, or HHS, notified its staff, in a message seen by the news outlet, requesting them to use other AI platforms instead, such as OpenAI’s ChatGPT and Alphabet’s (GOOG) (GOOGL) unit Google’s Gemini, the report added.
The HHS, Department of State, Department of the Treasury, Anthropic, OpenAI, and Google did not immediately respond to a request for comment from Seeking Alpha.
The U.S. State Department said it was switching the model powering its in-house chatbot, StateChat, to OpenAI from Anthropic, the report noted, citing a memo.
“For now, StateChat will use GPT4.1 from OpenAI,” it said, adding that further information would come later.
“In line with the president’s direction to cancel Anthropic contracts, we are taking immediate steps to implement the directive and bring our programs into full compliance,” said State Department spokesperson Tommy Pigott to the news agency Reuters.
On Monday, William Pulte, director of the Federal Housing Finance Agency, said in a post on X that the “U.S. Federal Housing, Fannie Mae and Freddie Mac are terminating all use of Anthropic products, including the use of its Claude platform.”
On Friday, President Donald Trump ordered federal agencies to stop using Anthropic’s AI tools, canceling more than $200M in contracts. Defense Secretary Pete Hegseth described the company as a national security “supply chain risk,” an unusual designation for a U.S. firm. Anthropic CEO Dario Amodei said his company was being punished for refusing to loosen restrictions on how its AI can be used by the U.S. military.
On Thursday, Anthropic — which is backed by Amazon (AMZN) and Alphabet’s (GOOG) (GOOGL) Google — had rejected the Department of War’s demand for unrestricted access to its AI models.
Meanwhile, rival OpenAI publicly stated that it does not believe Anthropic should be designated as a “supply chain risk” by the U.S. government. However, the ChatGPT maker has signed an agreement with the U.S. Department of Defense to deploy its models within a classified government network.
However, Altman said on Monday that the company “shouldn’t have rushed” its recent deal with the Department of Defense and that OpenAI would amend the contract. Meanwhile, Congressional Democrats have pledged to challenge the Trump administration’s measures against the use of Anthropic’s AI products by federal agencies and Pentagon contractors.