The U.S. Defense Secretary labeled the AI company a “supply chain risk” after it declined to eliminate safety guardrails from its technology.
The administration of U.S. President Donald Trump stated in a court filing that the Pentagon’s blacklisting of Anthropic was lawful and justified, opposing the AI company’s high-profile lawsuit challenging the move.
These remarks were made in a court filing on Tuesday.
Defense Secretary Pete Hegseth on March 3 labeled Anthropic, creator of the AI assistant Claude, as a national security supply chain risk after the company declined to remove guardrails preventing its technology from being used in autonomous weapons or domestic surveillance.
In its court filing, the Trump administration argued that Anthropic is unlikely to prevail in its claims that the U.S. government’s actions violated First Amendment protections. The filing emphasized that the dispute arose from contract negotiations and national security concerns, not government retaliation.
“It was only when Anthropic refused to lift the restrictions on the use of its products — a refusal that constitutes conduct, not protected speech — that the President directed all federal agencies to end their business relationships with Anthropic,” the filing stated. The submission from the U.S. Justice Department added that “no one has purported to restrict Anthropic’s expressive activity.”
Anthropic has filed a lawsuit in a California federal court seeking to prevent the Pentagon’s decision from taking effect while the case proceeds. Some legal experts suggest the company may have a strong argument that the government exceeded its authority.
In a statement, Anthropic said it is reviewing the government’s filing. The company added that “seeking judicial review does not change our longstanding commitment to using AI to protect national security, but it is a necessary step to safeguard our business, customers, and partners.”
The White House did not immediately respond to requests for comment.
Supply Chain Risk
President Donald Trump has supported Pete Hegseth’s decision, which bars Anthropic from a limited set of military contracts. However, company executives warn that the move could harm its reputation and lead to billions of dollars in losses this year.
The designation followed months of stalled negotiations between the Pentagon and Anthropic, prompting Trump and Hegseth to criticize the company and accuse it of putting American lives at risk due to its use restrictions.
Anthropic has rejected these claims, stating that AI is not yet safe for use in autonomous weapons and that it opposes domestic surveillance on principle.
In its March 9 lawsuit, the company argued that the “unprecedented and unlawful” designation violated its free speech and due process rights, and also conflicted with a law requiring federal agencies to follow specific procedures in such decisions.
Separately, the Pentagon labeled Anthropic a supply chain risk under another statute, which could extend the restriction across the entire government.
Anthropic is challenging this designation in a second lawsuit filed in a Washington, D.C., appeals court.
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