AI company Anthropic has filed lawsuits against the U.S. Department of Defense after the Pentagon designated the company a “supply chain risk,” a rare label typically reserved for foreign adversaries, according to reporting by Axios.
Anthropic argues the designation violates its First Amendment rights and exceeds the government’s legal authority. The company is asking courts to overturn the classification, block its enforcement and require federal agencies to withdraw directives instructing them to stop using Anthropic’s AI technology.
The dispute follows the Pentagon’s decision last week to label Anthropic a supply chain risk, a move that requires companies working with the Defense Department to stop using the firm’s Claude AI model in systems directly tied to the military. President Donald Trump also directed federal agencies to phase out the company’s technology, and some agencies have already begun removing the tools from their operations.
According to Axios, Anthropic’s primary lawsuit was filed in the U.S. District Court for the Northern District of California. The company claims the government is retaliating against it for publicly advocating safeguards to prevent AI systems from being used for mass domestic surveillance or fully autonomous weapons.
Anthropic said the Pentagon is free to choose not to work with the company but cannot label it a national security risk as punishment for protected speech. The lawsuit also challenges the government’s reliance on federal procurement law, arguing Congress required the Defense Department to use the least restrictive means when addressing supply chain risks.
A second lawsuit has been filed in the U.S. Court of Appeals for the District of Columbia Circuit, where Anthropic is raising similar legal arguments under a separate statute.
Defense officials maintain the dispute centers on operational control rather than free speech, saying the military must ensure it can deploy technology without vendors influencing battlefield decision-making.
Despite the legal battle, Anthropic says it remains committed to supporting U.S. national security operations while pursuing a resolution with the government.
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