US Govt Calls Anthropic AI Risk

The US government has designated artificial intelligence company Anthropic an "unacceptable risk" to military supply chains, according to court documents. The decision comes after months of negotiations between Anthropic and the Pentagon that ended in an impasse over the use of AI for autonomous weapons and domestic surveillance.

The Pentagon, under Defense Secretary Pete Hegseth, designated Anthropic a national security supply chain risk on March 3. The move follows Anthropic's refusal to remove guardrails against its technology being used for these purposes. According to the Trump administration's court filing seen by AFP and Reuters, "allowing Anthropic continued access to DoW’s technical and operational warfighting infrastructure would introduce unacceptable risk into DoW supply chains."

Anthropic has challenged the designation in a lawsuit filed on March 9, arguing that it violates its free speech and due process rights. The company also contends that the government failed to follow proper procedures. In response, Microsoft has sided with Anthropic, warning against risking the AI ecosystem.

The Trump administration defends the blacklisting, asserting that it is justified by national security concerns rather than retaliation. However, some legal experts believe Anthropic has a strong case that the government overreached. The designation could exclude Anthropic from military contracts and cause billions of dollars in losses this year, according to company executives.

Anthropic maintains its commitment to harnessing AI for national security but insists on protecting its business, customers, and partners. The company has also filed a second lawsuit in a Washington, DC appeals court challenging the Pentagon's designation under a different law that could expand the order to the entire government.