Anthropic to sue Pentagon over 'supply chain risk' label
What's the story
Anthropic has announced its plan to sue the Pentagon over a recent ruling that classifies it as a supply-chain risk. The decision comes just hours after President Donald Trump ordered federal agencies to stop using Anthropic's technology. In a scathing Truth Social post, Trump called the company's executives "Leftwing nut jobs," further straining relations between the White House and major AI providers for the Pentagon.
Presidential order
Trump orders federal agencies to stop using Anthropic's tech
Trump ordered all federal agencies to "immediately" stop using Anthropic's technology. Those agencies that currently rely on its products have been given a six-month period to phase them out. The president alleged that Anthropic is trying to "STRONG-ARM the Department of War" into accepting its terms of service instead of following the Constitution. He further accused the company of putting American lives at risk with its selfishness and jeopardizing national security.
Contract concerns
Pentagon pushed for expanded usage rights from Anthropic
The Pentagon has been pushing for expanded usage rights from Anthropic, which the company's CEO Dario Amodei has resisted. He insists that the company "cannot in good conscience accede" to these demands. Defense Secretary Pete Hegseth had previously warned that if this refusal continues, it could lead to contract termination and designation of the company as a "supply chain risk."
Public response
Standoff divides opinions in Silicon Valley
The standoff has divided opinions in Silicon Valley. Elon Musk has publicly supported the administration's position, while Sam Altman expressed his support for Anthropic's safety concerns, saying he largely trusts the company's intentions. On social media platform X, Hegseth announced an immediate ban on any commercial activity with Anthropic by contractors, suppliers, or partners doing business with the US military. In a blog post, Anthropic said "We will challenge any supply chain risk designation in court."