Anthropic sues Pentagon, Trump administration over “supply chain risk” designation

Anthropic, a powerful artificial intelligence firm, has filed a lawsuit against the Defense Department and other federal agencies following the Trump administration’s decision to designate it as a supply chain risk. The company claims that the government’s actions are “unprecedented and unlawful” and are a form of retaliation for its protected speech.

In the 48-page lawsuit filed in the U.S. District Court for the Northern District of California, Anthropic argues that the government is overstepping its boundaries by punishing the company for its stance on the use of its AI model, Claude, on classified networks. The company sought to impose restrictions on the military’s use of Claude, including prohibiting mass surveillance of U.S. citizens and the development of lethal autonomous weapons. However, the Pentagon insisted that Claude be available for “all lawful use.”

The conflict escalated when the two sides failed to reach a resolution, leading President Trump to order all federal agencies to cease the use of Anthropic’s technology. Defense Secretary Pete Hegseth then designated Anthropic as a supply chain risk and announced plans to phase out the technology over six months. Despite this, the Pentagon continued to use Claude during the U.S. and Israeli war with Iran.

Anthropic’s lawsuit challenges the supply chain risk designation and the president’s authority to order the government to cut ties with the company. The company argues that the government’s actions are causing immediate economic harm and threatening its reputation and First Amendment freedoms. The lawsuit accuses the administration of attempting to destroy the economic value created by Anthropic and stifle debate on the role of AI in warfare and surveillance.

In response to the lawsuit, a Pentagon spokesperson declined to comment on pending litigation, while White House spokeswoman Liz Huston defended the administration’s actions. She stated that the president will not allow a company to dictate how the military operates and emphasized that the military will obey the United States Constitution, not a private company’s terms of service.

Overall, Anthropic’s lawsuit highlights the growing tension between technology companies and the government over the use of AI in national security. The outcome of the legal battle could have far-reaching implications for the future of AI development and deployment in government agencies.