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Anthropic Sues to Overturn Pentagon 'Supply-Chain Risk' Label

The company says its limits on domestic mass surveillance and fully autonomous weapons triggered the dispute.

Overview

  • Anthropic filed two federal actions on March 9—one in a California district court and another in the D.C. Circuit—seeking to reverse the designation and block agencies from applying it.
  • The Pentagon’s label bars the firm from Defense Department work, with a six‑month deadline to remove Claude from classified systems after President Donald Trump directed agencies to stop using the product.
  • Legal experts and reporting describe the move as unprecedented for a U.S. company, citing authorities previously used against foreign adversaries.
  • The fallout threatens Anthropic’s defense revenue and partnerships, including Palantir’s use of Claude in its Maven Smart System, while Treasury and the GSA have signaled they will halt purchases.
  • OpenAI advanced with a separate Defense Department agreement, and its robotics director, Caitlin Kalinowski, resigned citing the Pentagon contract.