Anthropic to challenge 'supply-chain risk' designation in court

The Department of Defense, known under the Trump administration as the Department of War, has officially designated AI company Anthropic a "supply-chain risk" to national security. Anthropic CEO Dario Amodei said, "We do not believe this action is legally sound, and we see no choice but to challenge it in court," and stressed the designation does not affect the majority of Anthropic customers.

The dispute began over the potential use of Anthropic's AI for mass domestic surveillance and to power autonomous weapons like drones. Relations deteriorated after the company won a $200 million contract but sought guarantees that its technology would not be used for surveillance or weapons that can fire without humans in the loop; the U.S.

government would not agree and threatened the designation. President Trump also issued an executive order telling every federal agency to stop using Anthropic's AI. Amodei apologized for the leak of an internal memo and confirmed Anthropic and the Department of Defense have re-entered negotiations.

United States

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