Anthropic Sues Pentagon Over “Supply Chain Risk” Designation That Blocks Federal Contracts

Artificial intelligence company Anthropic filed lawsuits challenging the U.S. Department of Defense after the Pentagon labeled the firm a “supply chain risk,” a designation that effectively blocks the company from federal government work. The lawsuits, filed in federal court in California and the D.C. Circuit Court of Appeals, argue the designation was applied improperly and has never previously been used against a U.S.-based company.

• Anthropic filed two lawsuits: one in the U.S. District Court for the Northern District of California and another in the D.C. Circuit Court of Appeals.
• The company is challenging the Pentagon’s decision to designate it as a “supply chain risk,” which prevents it from working with the federal government.
• The designation is typically used for firms considered national security risks, including companies with ties to foreign governments such as China.
• Anthropic said the designation was used improperly and accused the Pentagon of applying it on ideological grounds.
• The company stated it will pursue legal action while also seeking dialogue with the U.S. government to resolve the dispute.

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Editor’s Note: This is a developing story. This article may be updated as more details become available.