\n Anthropic is suing the Department of Defense and other federal agencies on Monday over the Trump administration\u2019s decision to label the AI company a \u201csupply chain risk.\u201d\n <\/p>\n
\n The lawsuit is the latest development in an ongoing standoff between the Pentagon and one of world\u2019s most prominent AI companies as the White House attempts to boost AI adoption in the government.\n <\/p>\n
\n The supply chain risk designation is usually given to firms associated with foreign adversaries, and it impacts how Anthropic can do business with companies working with the Defense Department.\n <\/p>\n
\n Anthropic alleges that its categorization as a supply chain risk \u2014 and the Trump administration\u2019s directive that federal agencies stop using the company\u2019s technology \u2014 are legally unsound. The company called the moves \u201cunprecedented and unlawful\u201d in the legal filing.\n <\/p>\n
\n \u201cSeeking judicial review does not change our longstanding commitment to harnessing AI to protect our national security, but this is a necessary step to protect our business, our customers, and our partners,\u201d an Anthropic spokesperson said in a statement. \u201cWe will continue to pursue every path toward resolution, including dialogue with the government.\u201d\n <\/p>\n
\n The Pentagon declined to comment on litigation, citing department policy. White House spokesperson Liz Huston said the president \u201cwill never allow a radical left, woke company\u201d to dictate how the military operates.\n <\/p>\n
\n \u201cThe President and Secretary of War are ensuring America\u2019s courageous warfighters have the appropriate tools they need to be successful and will guarantee that they are never held hostage by the ideological whims of any Big Tech leaders,\u201d Huston said in a statement. \u201cUnder the Trump Administration, our military will obey the United States Constitution \u2013 not any woke AI company\u2019s terms of service.\u201d\n <\/p>\n
\n The Pentagon issued the supply chain risk designation after negotiations to update its contract with Anthropic broke down over two red lines that Anthropic wants the Defense Department to agree to: that its AI tool won\u2019t be used for mass surveillance of US citizens, and that it won\u2019t be used for autonomous weapons.\n <\/p>\n
\n The Pentagon, however, wants to use Anthropic\u2019s AI for \u201call lawful purposes,\u201d saying they could not allow a private company to dictate how they can use their tools in a national security emergency. The Pentagon previously claimed it\u2019s not interested in using AI for mass surveillance of US citizens and autonomous weapons.\n <\/p>\n
\n The Trump administration on February 27 ordered federal agencies and military contractors<\/a> to halt business with Anthropic after the company refused to let the Pentagon use its technology without restrictions. That same day, Defense Secretary Pete Hegseth said Anthropic<\/a> would be labeled a supply chain risk and added that \u201cno contractor, supplier, or partner that does business with the United States military may conduct any commercial activity with Anthropic.\u201d\n <\/p>\n<\/p>\n \n In its filing, Anthropic alleges that the government is retaliating against the company for its use of First Amendment-protected speech. It also argues that Trump does not have the authority to direct federal agencies to cease using Anthropic\u2019s technology, and that the company was not granted adequate due process.\n <\/p>\n \n The company is seeking injunctive relief, alleging that \u201ccurrent and future contracts with private parties are also in doubt\u201d and that \u201chundreds of millions of dollars\u201d are in jeopardy because of the Trump administration\u2019s actions.\n <\/p>\n \n \u201cOn top of those immediate economic harms, Anthropic\u2019s reputation and core First Amendment freedoms are under attack,\u201d the filing read. \u201cAbsent judicial relief, those harms will only compound in the weeks and months ahead.\u201d\n <\/p>\n \n Anthropic CEO Dario Amodei said<\/a> the formal letter it received designating it a supply chain risk<\/a> indicates its customers will only be restricted from using Claude in work directly related to their Pentagon contracts.\n <\/p>\n \n Anthropic previously said it planned to challenge the designation in court, adding that it \u201cset a dangerous precedent for any American company that negotiates with the government.\u201d\n <\/p>\n \n Amodei met with Hegseth<\/a> on February 24, but the two failed to come to an agreement. In a blog post<\/a> explaining the company\u2019s decision to reject the Pentagon\u2019s offer, Amodei said AI can\u2019t currently be used reliably and safely for cases like mass surveillance and autonomous weapons. He also said the company has been \u201chaving productive conversations\u201d with the Pentagon about how to work together while adhering to its redlines and about ensuring a smooth transition if an agreement isn\u2019t reached.\n <\/p>\n \n Trump said in a February 27 Truth Social post<\/a> that Anthropic has made a \u201cdisastrous mistake\u201d and accused the company of trying to dictate how the military operates.\n <\/p>\n