Anthropic sues Trump administration over ‘security risk’ label

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Updated: Mar 10th, 2026

American artificial intelligence company Anthropic has filed a lawsuit against the administration of former US President Donald Trump, challenging a government decision that labeled the company as a “supply chain risk”, as per reports.

The lawsuit was reportedly filed in a federal court in California on Monday. Anthropic says the decision is unfair and illegal. The company also criticized Trump’s order that asked all US government agencies to stop using its AI systems.

Anthropic is the company behind the Claude AI models, which are used for advanced artificial intelligence services. The company has previously worked with the US Department of Defence and intelligence agencies through a partnership with the data company Palantir.

The conflict began during discussions between Anthropic and the Pentagon about how the company’s AI technology should be used. Anthropic wanted strict rules on the use of AI tools. The company said its technology should not be used for mass surveillance inside the country or for fully autonomous weapons​

However, the US Defense Department reportedly rejected these conditions and said the technology should be available for all legal purposes.

After the negotiations failed, Anthropic CEO Dario Amodei said the company could not accept the government’s terms. Soon after, the Pentagon classified the company as a “supply chain risk,” a label usually used for companies connected to foreign security threats.

Following this decision, President Trump ordered government agencies to stop using Anthropic’s products, including its Claude AI systems.​

Anthropic reportedly argues that the government’s decision violates its constitutional rights and that no law allows such action. The company has asked the court to cancel the decision.

Despite the dispute with the US government, major tech companies like Google, Amazon, and Apple have said they will continue offering Anthropic’s AI tools on their platforms for non-defense uses.​

Experts believe this case could become an important legal battle that may influence how government and AI companies work together in the future.

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