Anthropic is suing the Department of Defense and other federal agencies on Monday over the Trump administrationโ€™s decision to label the AI company a โ€œsupply chain risk.โ€

The lawsuit is the latest development in an ongoing standoff between the Pentagon and one of worldโ€™s most prominent AI companies as the White House attempts to boost AI adoption in the government.

The supply chain risk designation is usually given to firms associated with foreign adversaries, and it impacts how Anthropic can do business with companies working with the Defense Department.

Anthropic alleges that its categorization as a supply chain risk โ€” and the Trump administrationโ€™s directive that federal agencies stop using the companyโ€™s tech

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