Anthropic on Monday filed a lawsuit to block the Pentagon from placing it on a national security blacklist, escalating the artificial intelligence lab’s high-stakes battle with the U.S. military over usage restrictions on its technology.
Anthropic said in its lawsuit that the designation was unlawful and violated its free speech and due process rights. The company filed two separate lawsuits Monday, one in California federal court and another in the federal appeals court in Washington, D.C., each challenging different aspects of the Pentagon’s actions against the company.
“These actions are unprecedented and unlawful. The Constitution does not allow the government to wield its enormous power to punish a company for its protected speech,” Anthropic said.
The Pentagon last week formally designated the San Francisco tech company a supply chain risk after an unusually public dispute over how its AI chatbot Claude could be used in warfare. Secretary of War Pete Hegseth designated Anthropic after the startup refused to remove guardrails against using its AI for autonomous weapons or domestic surveillance.
Anthropic officials said the lawsuit doesn’t preclude reopening negotiations with the U.S. government and reaching a settlement. The company has said it does not want to be fighting with the U.S. government. The Pentagon said it wouldn’t comment on litigation. Last week, a Pentagon official said the two sides were no longer having active talks.
The designation poses a big threat to Anthropic’s business with the government, and the outcome could shape how other AI companies negotiate restrictions on military use of their technology, though the company’s CEO, Dario Amodei, clarified on Thursday that the designation had “a narrow scope” and businesses could still use its tools in projects unrelated to the Pentagon.
President Donald Trump has also directed the government to stop working with Anthropic, whose financial backers include Alphabet’s Google and Amazon.com. Trump and Hegseth said there would be a six-month phase-out.
Trump and Hegseth’s actions on February 27 came after months of talks with Anthropic over whether the company’s policies could constrain military action, and shortly after Amodei met with Hegseth in hopes of reaching a deal.
The Pentagon said U.S. law, not a private company, would determine how to defend the country and insisted on having full flexibility in using AI for “any lawful use,” asserting that Anthropic’s restrictions could endanger American lives.
Anthropic said even the best AI models were not reliable enough for fully autonomous weapons and that using them for that purpose would be dangerous. The company also drew a red line on domestic surveillance of Americans, calling it a violation of fundamental rights.
After Hegseth’s announcement, Anthropic said in a statement that the designation would be legally unsound and set a dangerous precedent for companies that negotiate with the government. The company said it would not be swayed by “intimidation or punishment,” and on Thursday, Amodei reiterated that Anthropic would challenge the designation in court.
He also apologized for an internal memo published on Wednesday by tech news site The Information. In the memo, which was written last Friday, Amodei said Pentagon officials did not like the company in part because “we haven’t given dictator-style praise to Trump.”
Anthropic’s lawsuit also names other federal agencies, including the departments of Treasury and State, after officials ordered employees to stop using Anthropic’s services.
The Department of War signed agreements worth up to $200 million each with major AI labs in the past year, including Anthropic, OpenAI, and Google.
Microsoft-backed OpenAI announced a deal to use its technology in the Department of War network shortly after Hegseth moved to blacklist Anthropic. CEO Sam Altman said the Pentagon shared OpenAI’s principles of ensuring human oversight of weapon systems and opposing mass U.S. surveillance.
