In a major legal challenge, AI firm Anthropic has sued the U.S. Department of Defense to stop its inclusion on a national security blocklist. The move follows a Pentagon letter formally designating the company a supply chain risk, a classification CEO Dario Amodei vowed to contest.

The lawsuit, filed in federal court, argues the designation is illegal and violates the company's First and Fifth Amendment rights. "The Constitution does not permit the government to use its power to penalize a company for its protected speech," Anthropic stated. The company maintains the action followed its refusal to alter its AI systems for certain military applications.

According to the filing, tensions escalated in late February when Defense Secretary Pete Hegseth demanded Anthropic remove core safety safeguards. Amodei declined, specifically refusing to allow its technology to be used for mass surveillance or autonomous weapons. On a February 27 deadline, Hegseth threatened the risk designation and termination of a $200 million government contract. President Trump subsequently ordered all federal agencies to stop using Anthropic's systems.

Anthropic says it had agreed to help transition its government work to another provider. That provider appears to be OpenAI, which swiftly secured a Defense Department pact. OpenAI CEO Sam Altman emphasized contractual bans on domestic mass surveillance and ensuring human control over weapons—principles mirroring Anthropic's disputed stance. Nonetheless, the deal prompted the resignation of OpenAI's robotics hardware lead, Caitlin Kalinowski, who cited concerns over "surveillance of Americans without judicial oversight."

An Anthropic spokesperson told Engadget the lawsuit reflects a "necessary step to protect our business," while reaffirming a commitment to national security. The case sets the stage for a significant test of government authority over private AI development.

Source: Engadget