In a recent court filing, the Department of Defense stated that maintaining its relationship with AI firm Anthropic would create an "unacceptable risk" to national security supply chains. The filing is a direct response to Anthropic's lawsuit, which challenges the government's decision to label the company a supply chain risk. That designation stemmed from Anthropic's refusal to permit its AI models to be used for mass surveillance or in autonomous weapons systems.

The Pentagon's document reveals that Defense Secretary Pete Hegseth had embedded a standard clause in AI contracts allowing for broad, lawful use of the technology. Anthropic's rejection of those terms led officials to doubt the company's reliability as a partner on sensitive initiatives. The filing argues that Anthropic's AI systems are inherently vulnerable to manipulation, and that the company could theoretically disable or alter its technology during military operations if it believed its ethical boundaries were being violated. This potential for unilateral intervention was deemed an intolerable hazard.

Following these assessments, President Trump directed federal agencies to cease using Anthropic's technology. The company is now seeking a preliminary injunction to suspend the ban as it fights the designation in court, arguing the label threatens billions in revenue. While non-defense clients can still work with Anthropic, the legal battle continues. Microsoft, Google, and OpenAI have since filed briefs in support of the AI company's position.

Source: Engadget