Investing.com — The administration of Donald Trump is drafting new guidelines for civilian AI contracts, requiring companies to allow the U.S. government to use their models for “any lawful purpose,” according to Financial Times.

The move follows rising tensions between the Pentagon and Anthropic, after the AI company was designated a “supply chain risk.”

This designation effectively prevents U.S. government contractors from using Anthropic’s technology.

The dispute stems from Anthropic’s refusal to remove safeguards related to mass domestic surveillance and autonomous lethal weapons.

U.S. Defense Secretary Pete Hegseth stated that the country needs “patriotic” tech partners that do not impose “red lines” on lawful operations.

Anthropic argues that the decision lacks legal basis and plans to challenge it in court.

The U.S. government has given agencies six months to transition away from Anthropic systems.

Meanwhile, a new draft from the General Services Administration requires AI contractors not to encode partisan or ideological bias into their models.

Companies must also disclose if their systems comply with non-U.S. regulations such as the EU AI Act.

Tech markets reacted cautiously as the Nasdaq-100 fell 1.51%, while Microsoft and Alphabet Inc. also declined slightly.

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