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Pentagon Faces Free Speech Claims Over Anthropic Actions

Financial Times Companies •
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A US judge has questioned the Pentagon's actions against Anthropic, suggesting the defense department appears to be punishing the AI startup for publicizing its contract dispute. Judge Rita Lin characterized the Pentagon's move to brand Anthropic a supply chain risk as "an attempt to cripple" the company and potentially a violation of the First Amendment.

The dispute stems from Anthropic's refusal to allow its AI model Claude to be used for lethal autonomous weapons and mass domestic surveillance. The Trump administration responded by labeling Anthropic a supply chain risk—a designation typically reserved for foreign companies in adversary nations like Russia or China. President Trump ordered agencies to stop using the startup.

The legal challenge carries significant business implications, with Anthropic estimating hundreds of millions of dollars in annual revenue could be at risk. The company argues the designation violates constitutional rights and constitutes retaliation for refusing to comply with Pentagon demands to loosen safeguards on its technology. Defense Secretary Pete Hegseth posted on X that all military contractors must end partnerships with Anthropic.