U.S. Defends Anthropic Blacklisting as AI Firm Challenges Pentagon Decision

The U.S. government has defended its decision to blacklist Anthropic, arguing in a court filing that the move was lawful and based on national security concerns, as the company challenges the designation in federal court.

The filing by the U.S. Department of Justice supports a decision by the U.S. Department of Defense to classify Anthropic as a national security supply chain risk earlier this month.

Defense Secretary Pete Hegseth made the designation on March 3 after the company declined to remove restrictions on how its AI technology could be used, including limitations on applications such as autonomous weapons and domestic surveillance.

Anthropic, which develops the Claude AI assistant, has filed a lawsuit in a California federal court seeking to block the decision, arguing that the designation violates its constitutional rights and federal procedures.

In its response, the Justice Department said the dispute stems from contractual and national security considerations rather than free speech, rejecting Anthropic’s claim that the move infringes on First Amendment protections.

The filing said the government acted only after the company refused to alter its product restrictions, describing that refusal as conduct rather than protected speech.

Anthropic said it is reviewing the government’s response but maintained that the legal challenge is necessary to protect its business, customers and partners.

The dispute highlights tensions between government agencies and AI developers over how advanced systems should be deployed, particularly in sensitive areas such as defense and surveillance.

Donald Trump backed the Pentagon’s decision, which currently affects a limited set of military contracts but could have broader implications if extended across federal agencies.

Anthropic has argued that current AI systems are not sufficiently safe for use in autonomous weapons and has opposed their deployment in domestic surveillance.

The case could set an important precedent for how governments regulate AI companies, especially as concerns grow over national security, ethical use and control of advanced AI technologies