Anthropic Sues Pentagon: AI Restrictions & Blacklisting

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Anthropic has filed a second lawsuit against the U.S. government, alleging an unlawful designation as a supply-chain risk that could lead to the company being blacklisted from federal contracts. The move follows a dispute over the company’s restrictions on the use of its artificial intelligence technology by the Pentagon.

Anthropic Designated a Supply-Chain Risk

The government designated Anthropic as a supply-chain risk under a law that could result in a broad ban across the civilian government. The full scope of the restrictions is still under review by multiple agencies, according to a person familiar with Anthropic’s legal strategy.

A group of 37 researchers and engineers from OpenAI and Google filed an amicus brief supporting Anthropic on Monday. The group, including Google Chief Scientist Jeff Dean, argued the government’s actions could discourage open discussion about the risks and benefits of AI.

“By silencing one lab, the government reduces the industry’s potential to innovate solutions,” the employees stated, clarifying they spoke in their personal capacities.

Anthropic’s second lawsuit, filed in the US Court of Appeals for the District of Columbia Circuit, claims the designation is unlawful and violates the company’s constitutional rights. Investors have reportedly been working to mitigate the damage from the fallout with the Pentagon, with concerns also expressed by OpenAI.

The Pentagon’s actions followed months of discussions with Anthropic regarding policies that could limit military operations. The designation was announced on Feb. 27 and officially communicated to Anthropic on March 3, shortly after a meeting between Anthropic CEO Dario Amodei and Pentagon official Michael Hegseth.

The Pentagon maintains that U.S. law, not a private company, should dictate national defense and asserted the need for full flexibility in utilizing AI for “any lawful use,” arguing Anthropic’s restrictions could endanger American lives.

Anthropic has stated that current AI models are not reliable enough for fully autonomous weapons systems and that their use would be dangerous. The company also opposes the use of its technology for domestic surveillance of Americans, deeming it a violation of fundamental rights.

Anthropic has vowed to legally challenge the designation, stating it would not be influenced by “intimidation or punishment.” Amodei apologized for an internal memo published by tech news site The Information, in which he stated Pentagon officials disliked the company in part because “we haven’t given dictator-style praise to Trump.”

The Department of War has agreements worth up to US$200 million each with major AI labs, including Anthropic, OpenAI, and Google. Microsoft-backed OpenAI recently announced a deal to integrate its technology into the War Department network following the move to blacklist Anthropic. OpenAI CEO Sam Altman said the Pentagon shares the company’s principles of human oversight of weapon systems and opposition to mass surveillance of U.S. citizens.


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