Anthropic's Claude surged to become the most downloaded free app on both Apple's App Store and Google Play Store Tuesday, following a high-profile clash with the Department of Defense. The AI company had refused to allow its Claude models to be used for mass surveillance or autonomous weapons development, prompting President Trump to order federal agencies to phase out Anthropic's technology within six months.

Defense Secretary Pete Hegseth labeled Anthropic a supply chain threat, potentially forcing government contractors to abandon the company's technology for federal work. Anthropic maintains this restriction applies only to government contracts, not private sector usage. The controversy has unexpectedly boosted the company's public image, with Monday marking its largest single-day sign-up total. Capitalizing on the momentum, Anthropic enhanced its free Claude offering with memory features that save and build upon user interactions.

Meanwhile, rival OpenAI announced a DOD agreement allowing military use of its models with guardrails similar to those Anthropic fought for. Critics argued the language contained surveillance loopholes, prompting OpenAI to clarify Monday that its tools won't be used for domestic surveillance of US persons or by intelligence agencies like the NSA without a separate agreement.