Anthropic sues the Trump administration after it was designated a supply chain risk | CNN Business

Anthropic is suing the Department of Defense and other federal agencies on Monday over the Trump administration’s decision to label the AI company a “supply chain risk.” The lawsuit is the latest development in an ongoing standoff between the Pentagon and one of world’s most prominent AI companies as the White House attempts to boost AI adoption in the government. The supply chain risk designation is usually given to firms associated with foreign adversaries, and it impacts how Anthropic can do business with companies working with the Defense Department. Anthropic alleges that its categorization as a supply chain risk — and the Trump administration’s directive that federal agencies stop using the company’s technology — are legally unsound. The company called the moves “unprecedented and unlawful” in the legal filing. “Seeking judicial review does not change our longstanding commitment to harnessing AI to protect our national security, but this is a necessary step to protect our business, our customers, and our partners,” an Anthropic spokesperson said in a statement. “We will continue to pursue every path toward resolution, including dialogue with the gove