Anthropic sues Pentagon over "supply chain risk" label

As promised by CEO Dario Amodei last week, Anthropic filed two federal lawsuits against the Department of Defense today, challenging a recent decision to officially label the company a "supply chain risk."

The legal action, filed in both a US District Court and the DC Circuit Court of Appeals, claims the government's move is unlawful and violates the company's First Amendment rights of free speech. Anthropic asked the court to undo the decision and prevent federal agencies from enforcing it.

As reported by the Financial Times, Anthropic's representatives claimed the government was “seeking to destroy the economic value created by one of the world’s fastest-growing private companies, which is a leader in responsibly developing an emergent technology of vital significance to our nation.”

Anthropic also clarified that this lawsuit doesn't close the door for reopening negotiations with the Pentagon. The company claims it has no intention of working against the US government, but CEO Amodei remained firm on his stance that Anthropic's AI technology is not to be used for unlawful purposes, mainly for the mass surveillance of US citizens and autonomous use of weapons.

Anthropic is the first domestic company in US history to be labeled as a "supply chain risk." This status is usually reserved for foreign companies, typically from China and Russia, that the US government perceives as dangerous to the public and national security.

Carrying this status introduces numerous challenges for Anthropic, as president Donald Trump ordered all federal agencies, as well as other companies associated with the government, to stop using its AI. However, Anthropic's main partners, Google, Amazon, and Microsoft, will continue working with Anthropic outside of defense-associated workloads.

Despite the imposed limitations on government-related work, Anthropic's fallout with the Pentagon actually had a positive effect on the company's financials. The general public is mostly siding with Anthropic, applauding it for not backing down. Anthropic is projected to generate around $20 billion in revenue by the end of the year.