after the artificial intelligence company refused to lift restrictions on the military use of its products.

The president announced a six-month phase-out period for agencies currently using Anthropic's technology, including the Department of Defense. Trump warned the company to cooperate during the transition or face civil and criminal penalties.

The directive comes as Anthropic and the Pentagon remain at an impasse over safeguards for artificial intelligence. Undersecretary of Defense for Research and Engineering Emil Michael told Bloomberg on Friday that defense officials remain willing to continue negotiations with Anthropic, despite calling the company's behavior "unpredictable."

"As long as they act in good faith, we are always open to negotiations," Michael said. "Before that deadline, I am open to additional negotiations, and I have told them so."

Anthropic rejected the Pentagon's latest offer to end the dispute on Thursday. The company claimed that the new contract language from defense officials doesn't satisfy its desire to limit the military use of its artificial intelligence tools.

Anthropic insists on two specific restrictions: it does not want its AI tools used to spy on US citizens or to carry out autonomous lethal strikes without human intervention.

This position has led to a standoff between CEO Dario Amodei and Defense Secretary Pete Hegseth, who has promised to eradicate "progressive" practices within the department.

Pentagon officials are resisting the company's demands and want to use its Claude software, one of the few AI tools cleared to work with classified cloud data, within the law but without Anthropic's restrictions.

On Thursday, Amodei stated that the company stands firm. "These threats do not change our position: we cannot in good conscience agree to their demands," he said in a statement.