Anthropic Challenges Pentagon Over Supply Chain Risk Label

Anthropic has followed through on its promise to legally challenge the Department of Defense after the agency designated it a supply chain risk late last week.

The maker of Claude filed two complaints against the DOD on Monday in California and Washington D.C. This action follows weeks of dispute over whether the military should have unrestricted access to Anthropic's AI systems. The company maintained two firm conditions: it refused to allow its technology to be used for mass surveillance of American citizens, and it did not believe its systems were sufficiently advanced to operate fully autonomous weaponry without human oversight for targeting and engagement decisions.

Defense Secretary Pete Hegseth contended that the Pentagon should have access to AI systems for any legally sanctioned purpose and should not be constrained by the policies of a private contractor.

A supply chain risk designation is typically applied to foreign adversaries. It mandates that any company or agency conducting business with the Pentagon must certify it does not utilize Anthropic's AI models. While several private sector clients continue to work with Anthropic, the company stands to lose a significant portion of its U.S. government business.

In its complaint filed in San Francisco federal court, Anthropic described the DOD's actions as "unprecedented and unlawful," accusing the administration of engaging in retaliation. The lawsuit states, "The Constitution does not permit the government to use its vast authority to penalize a company for protected speech."

According to the filing, this protected speech refers to Anthropic's public statements regarding the "limitations of its own AI services and important issues of AI safety." Members of the administration, including Defense Secretary Hegseth and President Trump, have previously criticized Anthropic and its CEO, Dario Amodei, labeling them "woke" and "radical" due to the company's advocacy for stronger AI safety and transparency protocols.

The lawsuit asserts that while the government is not obligated to endorse Anthropic's views or utilize its products, it cannot leverage state power to punish or suppress the company's expression.

Anthropic further argued that "no federal statute authorizes the actions taken here," claiming the Defense Department issued the supply chain risk designation "without following the procedures mandated by Congress." Standard legal procedure generally requires agencies to conduct a risk assessment, notify the company in question and allow for a response, issue a formal national security determination, and inform Congress before excluding a vendor from federal supply chains.

The company also accused the President of exceeding the authority granted by Congress when he directed all federal agencies to immediately cease using Anthropic's technology following CEO Amodei's reaffirmation of the company's core principles. Consequently, statements from both President Trump and Secretary Hegseth prompted the General Services Administration—the agency managing government contracts and procurement—to terminate Anthropic's "OneGov" contract. This action effectively cut off access to Anthropic's services for all three branches of the federal government.

"Defendants are attempting to dismantle the economic value generated by one of the world's most rapidly expanding private companies," the lawsuit contends. "The Challenged Actions cause immediate and irreparable harm to Anthropic; to others whose speech will be stifled; to those who benefit from the economic value the company can continue to generate; and to the global public, which deserves vigorous open discussion on the implications of AI for warfare and surveillance."

As part of its request for relief, Anthropic asked the court to immediately suspend the Defense Department's designation while the case is ongoing, and ultimately to overturn and permanently prevent the government from enforcing it.

"Pursuing judicial review does not alter our enduring commitment to leveraging AI for national security, but this step is essential to safeguard our business, our customers, and our partners," an Anthropic spokesperson said in a statement. "We will continue to explore all avenues for a resolution, including ongoing dialogue with the government."

Anthropic additionally filed a separate petition with the D.C. Circuit Court of Appeals, as federal procurement law allows companies to appeal supply chain risk designations. This petition requests the court to review and reverse the DOD's decision to label the company a national security supply chain risk. In this filing, Anthropic maintains the action was unlawful, retaliatory, and improperly executed under federal procurement statutes.

This story has been updated with additional details and news of Anthropic filing a separate lawsuit in the D.C. Circuit Court of Appeals. It was originally published March 9, 2026 at 8:39am PT.