Anthropic sues Defense Department over supply-chain risk designation

Anthropic has followed through on its promise to legally challenge the Department of Defense. This action comes after the DOD formally labeled Anthropic a supply-chain risk late last week. The maker of Claude filed two complaints against the DOD on Monday in courts located in California and Washington, D.C. This legal move is the culmination of a weeks-long conflict centered on whether the military should have unrestricted access to Anthropic’s AI systems.

Anthropic had established two firm boundaries. The company did not want its technology used for mass surveillance of American citizens. It also stated its technology was not ready for use in powerfully autonomous weapons systems where humans would not be involved in targeting and firing decisions. Defense Secretary Pete Hegseth countered this position, arguing that the Pentagon should have access to AI systems for any lawful purpose and should not be limited by the policies of a private contractor.

A supply-chain risk designation is typically applied to foreign adversaries. It requires any company or agency working with the Pentagon to certify they do not use Anthropic’s models. While several private companies continue to work with Anthropic, the firm stands to lose a significant portion of its government business. In its complaint filed in San Francisco federal court, Anthropic called the DOD’s actions unprecedented and unlawful, accusing the administration of retaliation.

The lawsuit states that the Constitution does not permit the government to use its power to punish a company for its protected speech. This protected speech refers to Anthropic’s stated beliefs regarding the limitations of its own AI services and important issues of AI safety. Administration officials, including Defense Secretary Hegseth and President Trump, have publicly criticized Anthropic and its CEO Dario Amodei as woke and radical due to the company’s advocacy for stronger AI safety and transparency measures.

Anthropic’s legal argument contends that while the government is not required to agree with its views or use its products, it cannot employ state power to punish or suppress the company’s expression. The lawsuit also asserts that no federal statute authorizes the actions taken, claiming the DOD issued its supply-chain risk designation without following the procedures required by Congress. These procedures generally mandate a risk assessment, notification to the targeted company with an opportunity to respond, a written national-security determination, and notification to Congress before excluding a vendor.

The firm further accuses the president of operating outside his congressionally granted authority when he directed every federal agency to immediately stop using Anthropic’s technology. This directive followed CEO Dario Amodei’s statement that he would not compromise on the company’s established boundaries. As a result of statements from both President Trump and Secretary Hegseth, the General Services Administration terminated Anthropic’s OneGov contract. This action ended the availability of Anthropic’s services to all three branches of the federal government.

The lawsuit claims the challenged actions seek to destroy the economic value of one of the world’s fastest-growing private companies. It argues these actions cause immediate and irreparable harm to Anthropic, chill the speech of others, harm those who benefit from the company’s economic value, and damage public debate on AI’s role in warfare and surveillance.

As part of its complaint, Anthropic has asked the court to immediately pause the DOD’s designation while the case proceeds and to ultimately invalidate and permanently block its enforcement. An Anthropic spokesperson stated that seeking judicial review does not change the company’s commitment to harnessing AI for national security, but that this step is necessary to protect its business, customers, and partners. The company stated it will continue to pursue every path toward resolution, including dialogue with the government.

Anthropic filed a separate complaint in the D.C. Circuit Court of Appeals. Federal procurement law allows companies to appeal supply-chain risk designations through this channel. This petition asks the court to review and overturn the Defense Department’s decision to designate the company a national security supply-chain risk. In this complaint, Anthropic argued the move was unlawful, retaliatory, and improperly executed under federal procurement law.