Trump vs Anthropic: What is the Defense Production Act, how it could impact AI firms like the Claude maker

US President Donald Trump, on Friday night, made a surprise announcement when he directed all federal agencies to stop using Anthropic's AI tools. His announcement came after the AI startup, known for its conversational AI assistant Claude, refused the Pentagon's demand to agree to unconditional military use of its Claude models. 

After Trump's recent announcement, questions are emerging about whether a US president could compel AI firms to cooperate with the government under emergency powers. At the centre of the debate is the Defence Production Act of 1950 (DPA), a Cold War–era statute that gives the president broad authority to mobilize private industry in the name of national defense.

What Is the Defense Production Act?

Passed during the Korean War, the DPA allows the president to require private companies to prioritise federal contracts deemed essential to national defense which also permits the government to allocate materials and services to expand production of critical resources.

Over the decades, presidents of both parties have used the law to address industrial bottlenecks from military hardware to medical supplies during COVID-19 and semiconductor manufacturing.

Can a US president use the Defense Production Act on private companies?

Yes. The Defense Production Act of 1950 applies to private businesses and allows a president to require companies to accept and prioritise government contracts tied to national defense, provided they are paid. However, the law does not typically permit the government to seize companies or dictate every aspect of how a product is designed. Its use can also be challenged in court.

Could Donald Trump Force Anthropic to Provide Unrestricted AI Access?

Donald Trump could theoretically invoke the Defense Production Act of 1950 to require a company like Anthropic to prioritise government access if deemed vital to national defense.

But forcing “unrestricted” access  especially if it meant removing safety guardrails would likely face serious legal challenges. The DPA has traditionally focused on prioritising production and supply chains, not altering how software systems function. Any such move would almost certainly trigger a major court battle over executive authority and corporate rights.

Does the Defense Production Act apply to AI companies like Anthropic? 

Yes, The Defense Production Act of 1950 applies to private companies across sectors, meaning an AI firm like Anthropic could be required to prioritise government contracts if deemed essential to national security. However, the law has historically focused on production and supply chains, not dictating how companies design or modify their software, making its use on advanced AI largely untested.

Has the Defense Production Act ever been used for technology control before?

Yes, but mainly for hardware and industrial capacity. It has been used to bolster semiconductor manufacturing, telecommunications infrastructure and medical technology production. It has not typically been used to force software companies to change how their technology functions or remove internal safeguards.