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Anthropic Sues to Overturn Pentagon ‘Supply‑Chain Risk’ Label as OpenAI Faces Boycott Fallout

The company seeks court review, calling the designation unconstitutional retaliation for model safeguards that bar mass surveillance or lethal autonomy.

Overview

  • Anthropic filed two challenges on March 9—one in federal court in California and another in the D.C. Circuit—seeking to nullify the Pentagon’s designation that restricts its use in defense work.
  • The Pentagon label, historically used for foreign adversaries, curtails Claude’s use in military contracts, and President Donald Trump ordered agencies to stop using the tool on a six‑month phase‑out.
  • The dispute stems from Anthropic’s refusal to remove guardrails against mass domestic surveillance and fully autonomous lethal weapons, while defense officials pressed for access to “all legal uses.”
  • OpenAI moved to replace Anthropic for classified Pentagon work; CEO Sam Altman later apologized internally for a rushed announcement, and hardware chief Caitlin Kalinowski resigned over safeguard concerns.
  • Backlash against OpenAI has grown, with Sensor Tower reporting a 295% one‑day spike in ChatGPT uninstalls and the QuitGPT movement claiming millions of cancellations, as Claude briefly led U.S. app downloads.