Anthropic Sues Pentagon For Being Labeled as Supply Chain Risk
These were not merely empty announcements—no, they mean business: The AI company Anthropic filed two lawsuits against the US Department of Defense on Monday, accusing the agency of violating the company’s constitutional rights and exceeding the government’s statutory authority by designating it as a supply chain risk.
The lawsuits were filed with the Federal District Court for the Northern District of California and the Court of Appeals for the District of Columbia. Anthropic is asking the courts to reverse the designation, block its enforcement, and instruct federal agencies to withdraw orders to cease cooperation with the company.
The legal dispute stems from a weeks-long conflict between Anthropic and the Department of Defense over access to the company’s AI systems. The Pentagon officially designated Anthropic as a supply chain risk last week, a measure typically reserved for foreign adversaries that pose a threat to national security. The designation requires companies that work with the Pentagon to confirm they are not using Anthropic’s models. President Trump also called on the federal government to stop using Anthropic’s technology in a post on Truth Social, prompting some agencies to begin divesting already.
Constitutional and Legal Arguments
In its complaint, Anthropic characterizes the Department of Defense’s actions as unprecedented and unlawful. The company argues that the designation constitutes punishment for its publicly stated views on AI policy, particularly its advocacy for safeguards against the use of its technology for mass domestic surveillance or fully autonomous weapons systems without human decision-makers in targeting and firing decisions.
The California lawsuit challenges the legal basis for the Pentagon’s designation. Anthropic contends that Congress required the department to use the least restrictive means to protect the government and mitigate supply chain risks, not to blacklist a supplier. The company emphasizes that the procurement laws enacted by Congress give neither the Pentagon nor President Trump the authority to blacklist a company.
The Department of Defense disputes this characterization, arguing that the dispute is about operational control, not free speech. Department officials state that the issue has always been whether the military can lawfully use technology without a vendor interfering in the chain of command and endangering soldiers. Deputy Secretary of Defense Pete Hegseth has taken the position that the Pentagon should have access to AI systems for any lawful purpose.
Implications and Possible Solutions
The legal action does not preclude a settlement between the two sides. Anthropic emphasizes that the lawsuits are not intended to force the government to cooperate, but rather to prevent officials from blacklisting companies over policy disagreements. Companies such as Microsoft and Google have stated they can continue their non-defense-related work with Anthropic.
Anthropic has announced it will continue to pursue cooperation with the Pentagon during ongoing major combat operations. A company spokesman stated that initiating judicial review does not change the long-standing commitment to using AI to protect national security, but is a necessary step to protect the business, customers, and partners. The company will continue to pursue all avenues for resolution, including dialogue with the government. The unusual situation also raises questions, as the government apparently used Claude for operations in Iran, which casts the designation as a security risk in a different light.
