AI vs Pentagon: Trump administration defends Anthropic blacklisting in US court filing

On March 3, 2026, Defense Secretary Pete Hegseth designated Anthropic a “national security supply chain risk.” This move effectively excludes the company from lucrative military contracts and could result in billions of dollars in losses. The administration of United States President Donald Trump stated in a court filing that the Pentagon’s blacklisting of Anthropic was justified and lawful, opposing the artificial intelligence company’s high-stakes lawsuit challenging the decision. The blacklisting followed an impasse in negotiations regarding AI safety guardrails.

The Pentagon demanded Anthropic remove restrictions that prevent its AI, Claude from being used in autonomous weapons and domestic surveillance. In response, the company filed a lawsuit in California, calling the designation "unprecedented and unlawful.”

They argue the government is violating their free speech and due process rights by retaliating against their policy decisions. In a Tuesday court filing, the Department of Justice argued that refusing to provide specific software capabilities is conduct, not protected speech. The government asserts the move was a lawful national security decision stemming from failed contract negotiations, rather than a violation of constitutional rights.

This case is a high-stakes test of whether an AI company has the right to dictate how the state uses its technology, or if the government can compel dual-use tech companies to remove safety restrictions for military purposes. Anthropic is pursuing two legal tracks: one in California to block the Pentagon’s decision and another in a D.C. appeals court challenging the broader government-wide supply chain risk designation.