Anthropic challenges the U.S. government’s actions in federal court after being labeled a “supply chain risk” and pushed out of government use, portraying the move as “unprecedented and unlawful” retaliation for its stance on military AI guardrails. In a 48‑page lawsuit filed in the Northern District of California, the company argues that “The Constitution does not allow the government to wield its enormous power to punish a company for its protected speech” and that no statute authorizes the penalties imposed. A separate petition in the D.C. Circuit seeks review and an emergency stay of the Pentagon’s risk designation, which threatens Anthropic’s federal contracts and reputation.
The conflict originates in conditions Anthropic demanded for use of its Claude model, the only AI system approved on classified networks, including assurances it would not support mass surveillance of U.S. citizens or lethal autonomous weapons, while the Pentagon insisted on access for “all lawful use.” After negotiations failed before a February 27 deadline, President Trump ordered all federal agencies “to IMMEDIATELY CEASE all use of Anthropic’s technology,” and Defense Secretary Pete Hegseth moved to phase the company out of defense systems over six months, even as Claude continued to be used in the context of the U.S. and Israeli war with Iran. Anthropic asks the court to declare Hegseth’s designation “arbitrary, capricious, an abuse of discretion, and contrary to law” and to find that the president lacked authority to mandate a government‑wide cutoff.
The company claims ongoing cancellation of federal contracts, uncertainty for private deals worth “hundreds of millions of dollars,” and damage to “core First Amendment freedoms,” characterizing the administration’s campaign as an effort to “destroy the economic value” of a leading AI firm and chill debate on AI’s role in warfare and surveillance. The White House defends the crackdown, asserting that a “radical left, woke company” will not dictate military operations and that the armed forces will follow the Constitution, “not any woke AI company’s terms of service.”
Reference
Becket, S. (2026, March 12). Anthropic sues Pentagon, Trump administration over “supply chain risk” designation. CBS News. https://www.cbsnews.com/news/anthropic-pentagon-supply-chain-risk-lawsuit/