Anthropic sues Defense Department over supply chain risk designation

Anthropic has filed a lawsuit against the U.S. Department of Defense in San Francisco federal court after the Pentagon labeled it a supply chain risk. The conflict stems from disagreements over the military's access to Anthropic's AI systems, particularly around mass surveillance of Americans and fully autonomous weapons. Defense Secretary Pete Hegseth argued the Pentagon should have unrestricted AI access for any lawful purpose, while Anthropic drew firm ethical red lines. The supply chain risk designation — typically reserved for foreign adversaries — requires any Pentagon contractor to certify they don't use Anthropic's models. Anthropic called the DOD's actions 'unprecedented and unlawful,' citing First Amendment protections against government retaliation for protected speech.