
Lawyers for the Department of War and Anthropic sparred in a California federal court on Tuesday over Anthropic’s challenge to the Pentagon labeling it a “supply-chain risk” to national security and banning all government contractors from using the company’s sweeping AI tools. Anthropic is seeking an injunction barring enforcement of that order.
The case—which involves a historic first in that the Department of Defense, informally renamed the Department of War (DOW) by the Trump administration, labeled a U.S.-led business as a supply-chain risk to national security—is rooted in a contract negotiation that escalated quickly. The DOW wanted to add a blanket “all lawful use” clause to its contracts with the AI firm so the military could use Anthropic’s Claude tool for any legal purpose.