Anthropic is taking the Trump administration to court over a national security label that the AI company says could damage its business and reputation.
The San Francisco-based artificial intelligence company filed two federal lawsuits Monday, challenging the government’s decision to classify it as a “supply chain risk” and block federal agencies from using its AI chatbot Claude. The legal fight follows a growing clash between the tech company and the Pentagon over how artificial intelligence should be used in military operations and surveillance.
Anthropic argues the move was retaliation after it refused to allow unrestricted military uses of its technology.
“These actions are unprecedented and unlawful,” Anthropic’s lawsuit says. “The Constitution does not allow the government to wield its enormous power to punish a company for its protected speech. No federal statute authorizes the actions taken here. Anthropic turns to the judiciary as a last resort to vindicate its rights and halt the Executive’s unlawful campaign of retaliation.”
The company filed one lawsuit in federal court in California and another in the U.S. Court of Appeals in Washington, D.C., each targeting different parts of the government’s actions.
Anthropic says it restricts Claude from being used for mass surveillance of Americans or fully autonomous weapons. Defense Secretary Pete Hegseth and other officials previously insisted the company must accept “all lawful” uses of its technology.
The “supply chain risk” designation cuts off Anthropic from defense work under a national security authority typically used to block foreign adversaries from sensitive systems. According to the lawsuit, it is the first known time the U.S. government has applied the designation to an American company.
The dispute is also unfolding during intense competition in the AI industry. While Anthropic pushes back against the Pentagon’s demands, companies including OpenAI, Google, and Elon Musk’s xAI have stepped in to offer competing AI systems for military use.
Anthropic says the government’s decision threatens contracts worth hundreds of millions of dollars and risks damaging the reputation of one of the fastest-growing AI companies in the world.
Still, the company maintains its stance on limits around certain military applications.
“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,” Anthropic said in a statement Monday.
