The AI startup, which helped deploy cutting-edge technology across multiple federal agencies, says the unprecedented designation threatens hundreds of millions of dollars in contracts, jeopardizes its reputation, and challenges core First Amendment freedoms
Anthropic has filed a lawsuit against the Trump administration after the artificial intelligence startup was blacklisted and labeled a threat to U.S. national security.
The company said in a complaint that these actions are “unprecedented and unlawful,” and that they are “harming Anthropic irreparably.” The lawsuit was filed in the U.S. District Court for the Northern District of California.
“Anthropic’s contracts with the federal government are already being canceled. Current and future contracts with private parties are also in doubt, jeopardizing hundreds of millions of dollars in the near-term,” the filing says. “On top of those immediate economic harms, Anthropic’s reputation and core First Amendment freedoms are under attack. Absent judicial relief, those harms will only compound in the weeks and months ahead.”
The lawsuit is the latest development in a two-week dispute between Anthropic and the Trump administration over how the company’s AI models can be used by the military and other federal agencies. Before the disagreement became public last month, Anthropic worked with several U.S. agencies to integrate its AI technology into government systems.
On Thursday, Anthropic confirmed that it had been officially designated a supply chain risk, a move that has historically been reserved for foreign adversaries. The designation requires defense vendors and contractors to certify that they do not use Anthropic’s models in work for the Pentagon.
President Donald Trump also posted on social media last month directing federal agencies to “immediately cease” all use of Anthropic’s technology.
“WE will decide the fate of our Country — NOT some out-of-control, Radical Left AI company run by people who have no idea what the real World is all about,” Trump wrote.
Anthropic has asked the court to vacate the supply chain risk designation and to grant the company a stay on the action while the legal case proceeds.
Anthropic signed a $200 million contract with the Department of Defense in July and was the first AI lab to deploy its technology across the agency’s classified networks. The company had been renegotiating the terms of its contract when disagreements arose. The Department of Defense wanted Anthropic to grant the agency unfettered access to its AI models, while Anthropic sought assurances that its models would not be used for fully autonomous weapons or domestic mass surveillance.
Anthropic’s models have continued to support U.S. military operations in Iran even after the company was blacklisted.
“Seeking judicial review does not change our longstanding commitment to harnessing AI to protect our national security, but this is a necessary step to protect our business, our customers, and our partners,” an Anthropic spokesperson told CNBC on Monday. “We will continue to pursue every path toward resolution, including dialogue with the government.”
A Department of Defense spokesperson declined to comment on the litigation.
More than a dozen federal agencies, including the Department of Defense, the Treasury Department, the State Department, and the General Services Administration, are named as defendants in the lawsuit.
“The consequences of this case are enormous,” the complaint says. “Defendants are seeking to destroy the economic value created by one of the world’s fastest-growing private companies, which is a leader in responsibly developing an emergent technology of vital significance to our Nation.”
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