California: The administration of Donald Trump has defended the Pentagon’s decision to blacklist AI firm Anthropic, arguing in a court filing that the move was both lawful and justified on national security grounds.
The filing marks the latest development in a high-stakes legal dispute between the US government and the company behind the AI assistant Claude. US Defence Secretary Pete Hegseth formally designated Anthropic as a national security supply chain risk on March 3.
The decision came after the company refused to remove safeguards that prevent its technology from being used in autonomous weapons systems and domestic surveillance. According to the administration, Anthropic’s refusal constituted conduct rather than protected speech under the First Amendment.
The US Department of Justice stated in its filing that the dispute is rooted in contractual disagreements and national security concerns, not retaliation against the company’s views. “It was only when Anthropic refused to release the restrictions on the use of its products, which refusal is conduct, not protected speech, that the President directed all federal agencies to terminate their business relationships with Anthropic,” the filing said. It added that no action had been taken to limit the company’s expressive activity.
Anthropic has filed a lawsuit in a California federal court seeking to block the Pentagon’s designation while the case proceeds. The company argues the move is unprecedented and unlawful, alleging violations of its constitutional rights, including free speech and due process protections.
In a statement, Anthropic said it is reviewing the government’s arguments and emphasized that the legal challenge does not alter its commitment to responsible AI development. The company reiterated its stance that current AI technologies are not safe enough for deployment in autonomous weapons and that it opposes domestic surveillance in principle.
The blacklisting applies to a limited set of military contracts but could have broader implications. Executives warn the designation may damage Anthropic’s reputation and potentially lead to billions of dollars in losses this year.
The decision follows months of failed negotiations between the Pentagon and Anthropic. Both President Trump and Hegseth have criticised the company, accusing it of jeopardising national security by maintaining restrictions on how its AI systems can be used.
Anthropic has rejected those claims and is pursuing a parallel legal challenge in a Washington, DC appeals court, contesting a separate designation that could extend the ban across the entire federal government.
The outcome of the case could set a significant precedent for how AI companies navigate government contracts, national security demands, and ethical safeguards in an increasingly competitive and politically sensitive sector.
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