Anthropic Files Lawsuits Over Pentagon's "Supply Chain Risk" Designation

Anthropic has filed two lawsuits challenging the Department of Defense's decision to label the artificial intelligence company a "supply chain risk," marking an escalation in a monthslong dispute over the firm's safety practices.

The lawsuits, filed in federal court in California and the US Court of Appeals for the Washington DC Circuit, directly challenge what Anthropic describes as unlawful government action. The Pentagon formally issued the supply chain risk designation last Thursday, making Anthropic the first US company to receive this blacklisting designation. The label effectively demands that any organization doing business with the federal government sever all ties with Anthropic, a development that poses serious threats to the company's operations.

The conflict centers on Anthropic's effort to implement safeguards preventing the military from using its AI models for mass domestic surveillance or fully autonomous lethal weapons. Rather than accepting Pentagon demands, Anthropic chose to resist, setting the stage for this legal confrontation.

In its California lawsuit, Anthropic contends the Trump administration is punishing the company for protected speech and its refusal to comply with government demands. "These actions are unprecedented and unlawful. The constitution does not allow the government to wield its enormous power to punish a company for its protected speech," the company stated in the filing.

Anthropic's Claude model has become deeply embedded within the Department of Defense over the past year. Until recently, Claude was the only AI model approved for use in classified systems. Reports indicate the DoD has relied heavily on Claude in military operations, including decisions regarding where to target missile strikes in its war against Iran.

The company emphasized in its lawsuit that it remains committed to national security applications of AI and has previously collaborated with the DoD to customize its systems for specific military needs. Anthropic stated it wants to continue negotiations with the government.

"Seeking 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," an Anthropic spokesperson told reporters. "We will continue to pursue every path toward resolution, including dialogue with the government."

In its filings, Anthropic alleged that the Pentagon's actions are causing irreparable harm to the company and "seeking to destroy the economic value created by one of the world's fastest-growing private companies, which is a leader in responsibly developing an emergent technology of vital significance to our Nation."

The allegation of severe economic damage contrasts with remarks made by Anthropic CEO Dario Amodei, who recently told CBS News that the supply chain risk designation would have "fairly small" impact and the company would be "gonna be fine."

The Department of Defense did not immediately respond to requests for comment on the lawsuits.