Anthropic Sues Trump Admin to Undo ‘Supply Chain Risk’ Label

Anthropic sued multiple government agencies and officials in a California federal court on Monday, asking the court to reverse the Department of Defenses decision to label the company a "supply chain risk" and to overturn President Donald Trumps directive that federal employees stop using Claude.

The company also filed in a Washington, D.C., appeals court. "These actions are unprecedented and unlawful," Anthropic argued. "The Constitution does not allow the government to wield its enormous power to punish a company for its protected speech." Defense Secretary Pete Hegseth, named in the lawsuit, moved to label Anthropic a supply chain risk, a decision finalized on March 3 that bars any person or business doing business with the military from also dealing with Anthropic.

It is the first time an American company has been designated a supply chain risk, a label usually reserved for companies tied to foreign adversaries.

United States, California; Washington, D.C.

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