Piousbox

Update: A top Pentagon official sees little chance of resuming negotiations with Anthropic over military use of its AI tools after the company launched their lawsuit. 

On Monday, under secretary of defense for research and engineering said that the lawsuit was an 'expected reaction' and that the company's move wouldn't alter the pentagon's decision.

"I don’t think there’s a scenario where this gets resolved in that way," he told Bloomberg. 

A former Uber Technologies Inc. executive now overseeing a Pentagon effort to accelerate AI adoption, Michael had held weeks of tense negotiations with Anthropic Chief Executive Officer Dario Amodei over terms for using the firm’s AI tools. Talks broke down roughly two weeks ago, after the company demanded assurances that its AI wouldn’t be used for mass surveillance of Americans or autonomous weapons deployment.

That prompted the Pentagon to declare San Francisco-based Anthropic a supply-chain risk, a move normally reserved for companies from adversarial nations. Until recently, Anthropic had provided the only AI system that could operate in the Pentagon’s classified cloud, and its Claude Gov tool has become a favored option among defense personnel for its ease of use. 

Meanwhile, Axios reports that the White House is preparing an executive order that will formally instruct the federal government to disentangle Anthropic from operations. 

A White House official said "any policy announcement will come directly from" the president and that "discussion about potential executive orders is speculation."

Various agencies such as the Treasury Department have already begun to offboard Anthropic. 

Authored by Stacy Robinson via The Epoch Times (emphasis ours),

Artificial intelligence (AI) developer Anthropic sued the Department of War on March 9, following the federal government’s designation of the company as a supply chain risk.

That designation hinders government agencies and their contractors from working with Anthropic.

The suit comes after the company refused to change the user policy for its AI tool Claude to allow the government to use it for what Anthropic described as “mass surveillance” and “fully autonomous weapons.”

The Pentagon has denied that it planned to use Claude for such purposes.

The refusal caused President Donald Trump and War Secretary Pete Hegseth to direct federal agencies to sever ties with Anthropic and state that “effective immediately, no contractor, supplier, or partner that does business with the United States military may conduct any commercial activity with Anthropic.”

On social media, both Trump and Hegseth accused Anthropic of trying to “strong-arm” the federal government by dictating its military policy.

“WE will decide the fate of our Country—NOT some out-of-control, Radical Left AI company run by people who have no idea what the real World is all about,” Trump said in a Feb. 27 Truth Social post.

“Their true objective is unmistakable: to seize veto power over the operational decisions of the United States military,” Hegseth said on X the same day. “That is unacceptable.”

Anthropic alleges that the federal government is punishing the company for its First Amendment-protected speech and viewpoint.

The company also alleges that the Department of War reached out to some of its business partners following the rift and that those companies “delayed or paused several national security contracts or business engagements already in active development with Anthropic.” That puts “millions, possibly billions, of dollars at risk,” Anthropic stated.

“These actions are unprecedented and unlawful,” Anthropic’s lawsuit reads.

“The Constitution does not allow the government to wield its enormous power to punish a company for its protected speech. No federal statute authorizes the actions taken here.

“Anthropic turns to the judiciary as a last resort to vindicate its rights and halt the executive’s unlawful campaign of retaliation.”

In its filing, Anthropic said it isn’t confident that Claude “would function safely or reliably” if used for those purposes. Anthropic’s suit asks the court to set aside Trump and Hegseth’s designation as unconstitutional.

The lawsuit also names the US Treasury and Treasury Secretary Scott Bessent, the State Department, and Secretary of State Marco Rubio, along with 17 other government agencies and officials.

A group of more than 30 AI engineers and scientists from OpenAI and Google, including the latter’s chief scientist, Jeff Dean, also filed a legal brief in support of Anthropic on Monday.

“If allowed to proceed, this effort to punish one of the leading U.S. AI companies will undoubtedly have consequences for the United States’ industrial and scientific competitiveness in the field of artificial intelligence and beyond,” the group wrote.

The Pentagon declined to comment on the suit.

The Pentagon previously said the company must accept “any lawful use” of its tools and technology to support the U.S. military.