Anthropic Sues Pentagon Over Supply Chain Risk Label

Anthropic Takes Legal Action Against the Department of Defense

Anthropic, the company behind the Claude AI system, has taken a bold step by filing legal complaints against the Department of Defense (DOD) in both California and Washington D.C. This move comes after the agency labeled Anthropic as a supply chain risk, which has sparked a significant conflict over the use of its AI technology within the military.

The dispute centers on whether the military should have unrestricted access to Anthropic’s AI systems. The company has drawn firm lines, stating it does not want its technology used for mass surveillance of Americans or to power fully autonomous weapons without human oversight. These concerns were highlighted in a recent lawsuit filed by Anthropic, which claims that the government's actions are “unprecedented and unlawful.”

Defense Secretary Pete Hegseth argued that the Pentagon should have access to AI systems for “any lawful purpose” and that it shouldn’t be restricted by private contractors. However, the label of a supply chain risk is typically reserved for foreign adversaries, and it requires any company or agency working with the Pentagon to certify that they don’t use Anthropic’s models. While some private companies continue to work with Anthropic, the firm is at risk of losing much of its government business.

In its lawsuit, Anthropic accuses the administration of retaliation, citing the government’s attempt to suppress the company’s protected speech. The lawsuit references the company’s beliefs about the “limitations of its own AI services and important issues of AI safety.” This stance has drawn criticism from figures like Defense Secretary Hegseth and President Trump, who have labeled Anthropic and its CEO, Dario Amodei, as “woke” and “radical” for advocating stronger AI safety and transparency measures.

Legal Challenges and Government Actions

Anthropic argues that while the government doesn’t need to agree with its views or use its products, it cannot employ the power of the state to punish or suppress the company’s expression. The lawsuit also claims that no federal statute authorizes the actions taken by the DOD, suggesting that the supply chain risk designation was issued “without observance of the procedures Congress required.”

According to the law, agencies must conduct a risk assessment, notify the targeted company, allow it to respond, make a written national-security determination, and notify Congress before excluding a vendor from federal supply chains. Anthropic asserts that these steps were not followed, making the DOD’s actions illegal.

The firm also accuses the president of exceeding his authority when he directed all federal agencies to stop using Anthropic’s technology following Amodei’s firm stance on AI safety. As a result, the General Services Administration terminated Anthropic’s “OneGov” contract, ending the availability of its services to all three branches of the federal government.

Seeking Judicial Review

In its complaint, Anthropic asked the court to immediately pause the DOD’s designation while the case proceeds and ultimately invalidate and permanently block the government from enforcing it. The company emphasized that seeking judicial review does not change its commitment to harnessing AI for national security but is necessary to protect its business, customers, and partners.

“Defendants are seeking to destroy the economic value created by one of the world’s fastest-growing private companies,” the lawsuit reads. “The Challenged Actions inflict immediate and irreparable harm on Anthropic; on others whose speech will be chilled; on those benefiting from the economic value the company can continue to create; and on a global public that deserves robust dialogue and debate on what AI means for warfare and surveillance.”

Additional Legal Steps

In addition to the complaint in California, Anthropic filed a separate lawsuit in the D.C. Circuit Court of Appeals. This move is based on federal procurement law, which allows companies to appeal supply chain risk designations. The petition asks the court to review and overturn the DOD’s decision to designate the company as a national security supply chain risk.

In the complaint, Anthropic argued that the move was unlawful, retaliatory, and improperly executed under federal procurement law. The company continues to seek resolution through dialogue with the government while pursuing all available legal paths.