Anthropic sues Pentagon over rare "supply chain risk" label

Anthropic has sued the Pentagon, alleging its recent "supply chain risk" designation violates the company's First Amendment rights and exceeds government authority. The designation, typically reserved for foreign adversaries, has led federal agencies to begin offboarding Anthropic's technology following a directive from President Trump. Anthropic argues the designation punishes its outspoken views on AI policy and challenges the statutory authority underpinning the Pentagon's action. The company seeks to undo the designation and block its enforcement, stating it aims to prevent blacklisting over policy disagreements, not to force government contracts. This legal challenge could redefine the government's power to classify technology providers based on perceived operational control and policy differences.