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Anthropic Sues Pentagon to Fight ‘Supply Chain Risk’ Label

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Anthropic
Anthropic claims Chinese firms used fake accounts to steal AI data. [SoftwareAnalytic]

Anthropic is taking the Pentagon to court. The AI startup has officially filed a lawsuit to stop the Department of Defense from adding it to a national security blocklist. This legal battle comes just days after the government labeled the company a “supply chain risk,” a move that Anthropic’s CEO promised to fight.

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The lawsuit argues that the government’s decision is illegal and violates the company’s rights to free speech and due process. In a statement, Anthropic called the move an “unprecedented and unlawful campaign of retaliation.” The company claims the Constitution does not allow the government to use its power to punish a business simply for taking a stand on ethical issues.

This conflict has been brewing for weeks. In late February, Defense Secretary Pete Hegseth pressured Anthropic to remove certain safety limits from its AI. The government wanted the freedom to use the technology for mass surveillance and autonomous weapons. Anthropic’s CEO, Dario Amodei, flatly refused to cross those ethical lines.

When Anthropic held its ground, Hegseth threatened them with the security risk label and promised to cancel a $200 million government contract. On the same day, President Donald Trump ordered all federal agencies to stop using Anthropic’s software entirely. Even as it faced this massive backlash, Anthropic said it offered to help the government transition smoothly to a different AI provider.

That provider turned out to be OpenAI. In the middle of the chaos, Anthropic’s main rival quickly signed a deal with the Pentagon. Ironically, OpenAI’s CEO claimed his company shares the same safety principles regarding mass surveillance and autonomous weapons. OpenAI even added a specific clause to its contract stating the AI would not be used to spy on Americans.

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However, not everyone at OpenAI was comfortable with the rapid deal. This past weekend, the company’s head of robotics hardware resigned in protest. She stated publicly that the issues of domestic surveillance and autonomous weapons required far more thought and debate than the company allowed.

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