Artificial intelligence company Anthropic has filed a lawsuit against the U.S. Department of Defense and other federal agencies after the Trump administration labeled the firm a “supply chain risk,” according to CNN.
The designation typically applies to companies linked to foreign adversaries and restricts how contractors working with the Pentagon can do business with the company. Anthropic argues the decision is legally flawed and threatens its partnerships and operations.
Anthropic had previously threatened to sue if the Pentagon labeled the company as a supply chain risk. https://t.co/ssYVvTg5km
— Business Insider (@BusinessInsider) March 9, 2026
The dispute stems from contract negotiations between Anthropic and the Pentagon. The company refused to allow its AI technology to be used for mass surveillance of U.S. citizens or autonomous weapons. Defense officials insisted the military must retain the right to use technology for any lawful national security purpose.
President Donald Trump criticized the company’s stance and said Anthropic made a “disastrous mistake.” The administration ordered federal agencies and contractors to halt certain business with the firm in late February.
Anthropic CEO Dario Amodei said the company will pursue legal action while continuing dialogue with the government.
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