Anthropic sues U.S. government over AI blacklist tied to military use dispute

Artificial intelligence developer Anthropic has filed a lawsuit against multiple U.S. government agencies, accusing the federal government of unlawfully blacklisting its technology after the company refused to allow certain military uses of its AI systems.

The complaint, filed in the U.S. District Court for the Northern District of California, seeks declaratory and injunctive relief against a broad group of federal entities and officials, including the Departments of War, Treasury, State, and Homeland Security, as well as the Federal Reserve and Securities and Exchange Commission.

Anthropic alleges the government retaliated against the company after it refused to permit its AI model family, known as Claude, to be used for lethal autonomous warfare or mass surveillance of Americans.

According to the complaint, tensions escalated after government officials demanded that Anthropic remove those restrictions and allow the Department of War to make “all lawful use” of the technology. The company said it agreed to expand cooperation but maintained its two key safety limitations.

The dispute culminated in a directive from Donald Trump, ordering federal agencies to immediately cease using Anthropic’s technology, followed by a decision from the Department of War to label the firm a “Supply-Chain Risk to National Security.”

The designation barred military contractors and partners from doing business with Anthropic, effectively cutting the company out of the defense supply chain. Several agencies subsequently halted contracts or instructed employees to stop using the company’s AI systems.

Anthropic argues these actions violate the First Amendment, the Administrative Procedure Act, and constitutional due-process protections. The company claims the measures were taken in retaliation for expressing concerns about the safety and reliability of AI systems used in autonomous weapons and mass surveillance.

The complaint states the government’s actions have already led to canceled contracts and could jeopardize hundreds of millions of dollars in near-term business, while also damaging the company’s reputation and commercial relationships.

Anthropic is asking the court to declare the government’s actions unlawful and block enforcement of the directives while the dispute is litigated.