Anthropic to challenge DOD’s supply-chain label in court

Anthropic plans to challenge the United States Department of Defense in court after the Pentagon labeled the company a “supply-chain risk.” CEO Dario Amodei said the designation is “legally unsound” and argued that it should be narrowly applied rather than blocking the company from broader work. The dispute began over how the military should be allowed to use AI systems. Anthropic stated that its AI model Claude would not be used for mass surveillance of Americans or fully autonomous weapons, while the Pentagon wanted unrestricted access for all lawful military purposes. Being labeled a supply-chain risk could prevent Anthropic from working directly with the Defense Department and some of its contractors. Following the decision, OpenAI signed a deal to provide AI services to the Pentagon instead, which reportedly sparked criticism from some employees. Amodei also apologized for a leaked internal memo that described OpenAI’s defense partnership as “safety theater,” saying the message was written quickly during a stressful period and did not reflect his carefully considered views. Anthropic said most of its customers are not affected by the designation and that it will continue supporting U.S. national security efforts by providing AI tools where possible during the transition. However, legal experts note that challenging the Pentagon may be difficult because courts often give the military broad authority on national-security decisions.