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Anthropic sues Pentagon over ‘supply chain risk’ designation

Anthropic sues Pentagon over ‘supply chain risk’ designation

Financial News
Anthropic sues Pentagon over ‘supply chain risk’ designation
Anthropic sues Pentagon over ‘supply chain risk’ designation
Anthropic sues Pentagon over ‘supply chain risk’ designation Proactive uses images sourced from Shutterstock

Anthropic has filed two lawsuits against the US Department of Defense, challenging the Pentagon’s recent decision to designate the firm a “supply chain risk.”

The lawsuits, filed in California federal court and the US Court of Appeals for the Washington D.C. Circuit, come after an unusually public dispute over the use of Anthropic’s AI models in military applications.

The Pentagon formally issued the designation last Thursday, marking the first time the government has applied the supply chain risk label to a US-based company. Under the designation, companies doing business with the government are effectively required to cut ties with Anthropic, a step the AI firm has described as a serious threat to its operations.

Anthropic alleges that the designation is unlawful and constitutes retaliation for its refusal to allow unrestricted military use of its AI technology. In its California lawsuit, the company argued that the Trump administration’s actions “are unprecedented and unlawful” and claimed they violate the company’s First Amendment rights.

“Seeking judicial review does not change our longstanding commitment to harnessing AI to protect national security, but this is a necessary step to protect our business, our customers, and our partners,” an Anthropic spokesperson said in a statement.

The company highlighted that it remains committed to providing AI for national security purposes and hopes to continue negotiations with the government.

Anthropic’s AI model, Claude, has reportedly been integrated into certain Department of Defense systems over the past year, including classified operations. While the company continues to support tailored applications of its technology for national security, it said it opposes unrestricted deployment for autonomous weapons or mass surveillance.

The lawsuits seek to reverse the supply chain risk designation and challenge related actions by the Pentagon, which Anthropic says are harming the company “irreparably.” The firm believes that the government’s measures threaten the economic value of one of the fastest-growing AI companies in the US.

The Pentagon did not immediately comment on the lawsuits.

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