Anthropic has taken legal action against the Donald Trump administration over a decision that affects how the artificial intelligence company can work with U.S. government partners. The lawsuit challenges the administration’s designation of Anthropic as a “supply chain risk,” a label that has major implications for its dealings with defense-related organizations.
Anthropic is suing Donald Trump administration
According to CNN, Anthropic has filed a lawsuit against the U.S. Department of Defense and other federal agencies after the Trump administration designated the artificial intelligence company a “supply chain risk.” The company argues that the designation and a directive ordering federal agencies to stop using its technology are legally unsound. Anthropic described the government’s actions in its legal filing as “unprecedented and unlawful.”
Anthropic and the Pentagon disagreed while negotiating a renewed contract for the company’s AI tools. The company proposed two conditions, stating its technology should not be used for mass surveillance of US citizens or for autonomous weapons. The Pentagon said it required the ability to use the technology for “all lawful purposes.”
On February 27, the Trump administration ordered federal agencies and military contractors to stop doing business with Anthropic after negotiations collapsed. Defense Secretary Pete Hegseth labeled the company a supply chain risk. He stated that “no contractor, supplier, or partner that does business with the United States military may conduct any commercial activity with Anthropic.”
Anthropic’s lawsuit alleges the government retaliated against the company for speech protected by the First Amendment. It also argues the president lacks the authority to direct agencies to stop using its technology. The filing says the decision could affect “hundreds of millions of dollars” in current and future contracts. It also argues that the government denied the company adequate due process.
The company said the designation also threatens its reputation and business relationships. An Anthropic spokesperson stated, “Seeking judicial review does not change our longstanding commitment to harnessing AI to protect our national security, but this is a necessary step to protect our business, our customers, and our partners.” The Pentagon declined to comment on the litigation, citing department policy.
Originally reported by Vritti Johar on Mandatory.com.
