'Never before publicly applied to an American company': Anthropic to challenge Pentagon's 'supply chain risk' designation in court

Anthropic, a prominent player in the artificial intelligence sector based in the U.S., has announced its intention to legally contest any attempt by the federal government to classify it as a 'supply chain risk.' This declaration comes on the heels of Secretary of War Pete Hegseth's recent announcement regarding potential actions against the company over disagreements related to its AI model, Claude. On social media, Hegseth indicated that he was directing the Department of War to label Anthropic with this designation. The situation arose after protracted negotiations between the two parties seemed to falter, primarily due to two critical stipulations put forth by Anthropic. The company has resisted the use of its AI technology for extensive domestic surveillance of U.S. citizens and for fully autonomous weaponry. In their statement, Anthropic emphasized that such a designation is historically unprecedented, arguing that it has never been applied to an American firm before. The company expressed disappointment over the developments, stating they have not received any formal notification from the Department of War or the White House regarding this classification. Anthropic explained that labeling them a supply chain risk is a serious matter—one typically reserved for U.S. adversaries, not domestic entities. The firm has been actively supporting U.S. military operations since June 2024, being the first frontier AI company to integrate its models into classified U.S. government networks. Furthermore, Anthropic clarified its commitment to lawful AI applications in national security, with the exceptions of the two contentious areas that, according to them, have not hindered any government operations thus far. The company articulated concerns regarding the reliability of current AI models for use in fully autonomous weapon systems, asserting that such applications could jeopardize the safety of both military personnel and civilians. Additionally, Anthropic regards mass surveillance as a violation of fundamental rights. Hegseth's potential designation could impede military contractors from collaborating with Anthropic. However, the company refuted this interpretation, stating that under 10 USC 3252, any supply chain risk classification would only pertain to the use of Claude in Department of War contracts and would not limit contractors' ability to engage with other clients. Anthropic reassured its customers that access to Claude via its API and products would remain uninterrupted, with its sales and support teams ready to address any inquiries, while reaffirming its commitment to supporting U.S. military initiatives within clear ethical guidelines.