Antropics sues Department of Defense over supply chain risk designation

Anthropic has made good on its promise to challenge the matter in court after the Department of Defense (DOD) late last week identified it as a supply chain risk.

After weeks of conflict between Anthropic and the Pentagon over whether the military should have unrestricted access to Anthropic’s AI systems, Claude’s creator filed two complaints against the Pentagon in California and Washington, D.C. on Monday. Anthropic had two firm lines. They didn’t want their technology to be used for mass surveillance of Americans, and they didn’t believe they were ready to develop fully autonomous weapons that didn’t require humans to determine targets or make firing decisions.

Defense Secretary Pete Hegseth argued that the Pentagon should have access to AI systems “for any lawful purpose” and should not be restricted by private contractors.

Supply chain risk labels are typically reserved for foreign adversaries and require companies and agencies working with the Department of Defense to certify that they are not using Anthropic’s model. Although some private companies still work with Anthropic, the company will lose much of its business within the government.

In a complaint filed in San Francisco federal court, Anthropic called the Pentagon’s actions “unprecedented and unlawful” and accused it of retaliation. “The Constitution does not authorize the government to use great power to punish corporations for protected speech,” the lawsuit states.

According to the complaint, the protected speech Anthropic is referring to is its beliefs about the “limitations of its AI services and important issues regarding AI safety.” The administration, including Secretary of Defense Hegseth and President Trump, has criticized Anthropic and CEO Dario Amodei as “woke” and “radical” over the company’s calls for stronger AI safety and transparency measures.

Anthropic argued in its lawsuit that while the government does not have to agree with its views or use its products, it cannot use state power to punish or suppress Anthropic’s expression.

Anthropic also argued that the Pentagon’s supply chain risk designation was issued “without following the procedures required by Congress,” and that “there is no federal law authorizing the actions taken here.” The law generally requires government agencies to conduct a risk assessment, notify targeted companies to allow them to respond, make a written national security determination, and notify Congress before removing a vendor from the federal supply chain.

The company also accuses the president of acting outside the authority given to him by Congress when he directed all federal agencies to immediately stop using Anthropic’s technology after Amodei said he would not take a hard line. Following President Trump and Secretary Hegseth’s statements, the General Services Administration (the federal agency that manages government contracting and purchasing) terminated Anthropic’s OneGov contract and ended the use of Anthropic’s services for all three branches of the federal government.

“Defendants seek to destroy the economic value created by one of the world’s fastest-growing private companies,” the complaint states. “Challenged actions cause immediate and irreparable harm to humanity, to others whose comments will be ridiculed, to those who benefit from the economic value the company continues to generate, and to the global public who deserve robust dialogue and debate about what AI means for war and surveillance.”

As part of its complaint, Anthropic asked the court to immediately suspend the Department of Defense’s designation while the litigation proceeds, and ultimately invalidate the government’s designation and permanently block its enforcement.

“While seeking judicial review does not change our long-standing commitment to leveraging AI to protect national security, it is a necessary step to protect our business, customers, and partners,” an Anthropic spokesperson said in a statement. “We will continue to pursue all avenues for a resolution, including dialogue with the government.”

Anthropic filed a separate complaint in the D.C. Circuit Court of Appeals because federal procurement law allows companies to appeal supply chain risk designations. The petition asks the court to review and overturn the Department of Defense’s decision to designate the company as a national security supply chain risk. Anthropic argued in its complaint that the move was illegal, retaliatory, and improperly executed under federal procurement law.

This article has been updated with more information and news that Anthropic has filed a separate lawsuit in the D.C. Circuit Court of Appeals.