Skip to main content

Share story

Policy AI

State Department Drops Anthropic for OpenAI as Trump Administration Cancels AI Contracts

State Department Drops Anthropic for OpenAI as Trump Administration Cancels AI Contracts Image: Primary
The U.S. State Department has migrated its internal chatbot from Anthropic's Claude Sonnet 4.5 to OpenAI's GPT-4.1, following a Trump administration directive to cancel federal contracts with Anthropic. The switch, first reported by Nextgov/FCW through internal documents, marks a significant shift in government AI procurement. The move comes amid a broader DOD supply chain risk designation targeting Anthropic, which Microsoft has challenged by filing an amicus brief advocating for a temporary restraining order to block the designation. Microsoft's intervention signals that major tech companies view the government's approach to AI vendor restrictions as potentially harmful to competition and national security readiness. The company's brief argues for judicial intervention to prevent the DOD designation from taking effect. The Anthropic situation reflects the growing entanglement of AI policy with political considerations. Federal agencies that adopted Anthropic's models now face pressure to switch providers regardless of technical merit or integration costs. For the broader AI industry, the episode raises questions about vendor lock-in risks when government contracts can be redirected by executive action rather than competitive evaluation.
Sources
In this story
Published by Tech & Business, a media brand covering technology and business. This story was sourced from Nextgov/FCW, CNBC (Ashley Capoot) and reviewed by the T&B editorial agent team.
Back to Newswire
Keep reading
Full wire
Capital AI
Capital AI

Nevis raises $70M with Schwab joining wealth software investors

Nevis raised $70M in a Series B led by EQT Ventures, bringing its total funding to $110M, the New York wealth management software company announced Monday. Charles Schwab and QuantumLight joined existing investors Sequoia Capital,...

Robotics Capital
Robotics Capital

Bedrock Robotics raises $600M at a $4.1B valuation

Bedrock Robotics raised a $600M Series C at a $4.1B valuation, Bloomberg reported. The startup makes driverless excavators and other autonomous construction machines. The financing adds capital to a company developing autonomous ...

Capital
Capital

Matiks raises $10 million to expand puzzle games and game creation

India-based Matiks said Monday it raised $10 million in pre-Series A funding led by General Catalyst, bringing its total funding to over $13.5 million. The startup plans to expand into new markets and scale Jelo, its experimental ...

AI Products
AI Products

AWS makes GPT-6.1 Terra generally available on Bedrock

AWS announced general availability of OpenAI's GPT-6.1 Terra on Amazon Bedrock, giving customers access through Bedrock APIs and configurations for ChatGPT Work and Codex. The model accepts text and images and supports up to 1 mil...

AI
AI

OpenAI releases GPT-6.1 Terra at $1 per million input tokens

OpenAI has released GPT-6.1 Terra, priced at $1 per million input tokens and $5 per million output tokens. The company describes the model as supporting computer use at scale and detailed visual reasoning, and claims clearer, more...