The US Department of Justice (DOJ) has defended the Trump administration’s decision to designate AI developer Anthropic as a supply-chain risk, arguing that the company’s First Amendment rights were not violated by the move. The government maintains that Anthropic’s lawsuit against the Pentagon will fail, as it does not have the right to dictate terms to federal agencies.
The dispute centers on Anthropic’s refusal to allow unrestricted military use of its AI models, specifically its Claude chatbot. The Pentagon fears that Anthropic could sabotage or manipulate its technology if it disagrees with government operations, potentially disrupting warfighting systems. Officials have described Anthropic as a “rogue contractor” whose technology cannot be trusted.
Anthropic argues that the supply-chain designation is illegal retaliation for its restrictions on AI deployment in autonomous weapons and mass surveillance. The company claims this action could cost it billions in lost revenue, as defense contracts are suspended. It seeks to restore business as usual while litigation continues, but the DOJ has called this request “legally insufficient.”
The Defense Department is actively replacing Anthropic’s AI tools with alternatives from Google, OpenAI, and xAI. This shift is expedited by the fact that Anthropic is currently the only AI model cleared for use in classified systems and high-intensity operations. The government argues it cannot rely on a vendor unwilling to guarantee full cooperation.
Several companies and AI researchers have filed briefs supporting Anthropic, but no support has been offered to the government. The case is scheduled for a hearing next week, where a judge will decide whether to temporarily lift the sanctions against Anthropic. The DOJ insists that national security concerns outweigh the company’s financial interests, and the Pentagon is prepared to move forward without Anthropic if necessary.
This dispute highlights a broader tension between AI developers prioritizing ethical restrictions and governments demanding unrestricted access to advanced technology for military purposes. The outcome will set a precedent for future interactions between the private sector and defense agencies in an increasingly AI-driven world.
