Anthropic Sues Pentagon Over 'Supply Chain Risk' Blacklist

Anthropic has filed two federal lawsuits challenging the Pentagon's decision to label the company a "supply chain risk."

“Last week, a department official said the two sides were no longer holding active talks”

ABC

The company argues the designation unlawfully blacklists it from defense contracts and exceeds the government's authority.

ABC

Anthropic seeks to overturn a designation made under 10 U.S.C. 3252 and asked courts in both the Northern District of California and the D.C. Circuit to block enforcement, calling the action an unlawful attempt to punish a supplier for its policy decisions.

Anthropic’s complaints assert the government acted in retaliation after the company refused to remove safety guardrails that prevent its Claude models from being used for mass domestic surveillance or fully autonomous weapons, and they raise constitutional claims including violations of the First Amendment and due process.

The filings say the administration demanded language allowing the military to use Claude for "any lawful use," a requirement Anthropic says would nullify its safety commitments.

Associated Press

The dispute escalated over months of negotiations and public pressure.

“The big picture: This doesn't preclude the two sides from reaching an agreement”

Axios

A key meeting between CEO Dario Amodei and Defense Secretary Pete Hegseth occurred in late February.

This was followed by a formal supply-chain designation in early March and presidential orders to phase out Anthropic from federal use.

Reports cite missed deadlines, public posts by President Trump, and a March 5 designation after the February meeting as proximate triggers.

Anthropic says the designation has already produced concrete harms, including loss of defense revenue, reputational damage, and some contractors severing ties.

The company says many commercial customers remain unaffected and that major cloud providers plan to keep offering Claude.

CriptoPeriódico

The lawsuits seek emergency relief, arguing the government’s notification was vague about which procurements are affected.

They argue the action threatens significant future revenue and partnerships.

The cases raise novel statutory and policy questions about whether a supply-chain risk authority designed to guard against foreign adversaries can be applied to a U.S. firm and whether private companies may lawfully set limits on government use of their AI.

“Home / World News / Anthropic sues Trump administration over Pentagon 'supply chain risk' tag Anthropic sues Trump administration over Pentagon 'supply chain risk' tag The Pentagon last week formally designated San Francisco tech company a supply chain risk after an unusually public dispute over how its AI chatbot Claude could be used in warfare Advertisement”

Business Standard

The government says private firms cannot unilaterally restrict lawful military uses.

El Independiente

Anthropic argues the designation is unprecedented and exceeds statutory scope, an outcome that legal experts say could set a major precedent for future AI procurement and safety negotiations.