Trump Administration Sued Over Labeling of US Supply Chain Risk

March 9, 2026 • Al Jazeera

Trump Administration Sued Over Labeling of US Supply Chain Risk

US Company Anthropic Files Lawsuit Against Pentagon Over National Security Blacklist Designation

Anthropic, a US-based artificial intelligence lab, has filed a lawsuit in federal court in California to block the Pentagon from placing it on a national security blacklist. The company claims that the designation is unlawful and violates its free speech and due process rights.

The Pentagon designated Anthropic as a supply-chain risk entity on Thursday, limiting the use of its technology for military operations. This move comes after months of contentious talks between Anthropic and the US government over usage restrictions on its AI technology. The company had refused to remove guardrails against using its AI for autonomous weapons or domestic surveillance.

Anthropic’s lawsuit seeks to undo the designation and block federal agencies from enforcing it. The company argues that the Constitution does not allow the government to punish a company for its protected speech. Anthropic also filed a separate lawsuit in the federal appeals court in Washington, DC, challenging different aspects of the government’s actions against the company.

The Pentagon has stated that US law will determine how to defend the country and that it needs full flexibility in using AI for “any lawful use”. The company, however, claims that its restrictions on AI technology are necessary to prevent dangerous uses. Anthropic has said that even the best AI models are not reliable enough for fully autonomous weapons.

The designation poses a significant threat to Anthropic’s business with the government and could shape how other AI companies negotiate restrictions on military use of their technology. The company’s CEO, Dario Amodei, has clarified that the designation has a narrow scope and businesses can still use its tools in projects unrelated to the Pentagon.

Source: Al Jazeera