Anthropic filed a lawsuit against the Trump administration in the Northern District of California, arguing that the Pentagon’s decision to designate it a supply chain risk and cancel its federal contracts exceeded statutory authority and amounted to retaliation for the company’s refusal to allow its AI tools to be used for mass domestic surveillance or autonomous weapons. The company warned in separate filings that the moves could slash its 2026 revenue by billions of dollars and hinder its ability to raise funds for model training, while 37 researchers from OpenAI and Google filed a supporting brief urging the court to side with Anthropic, including Google DeepMind chief scientist Jeff Dean. Anthropic’s $200M Pentagon contract has been terminated and Trump directed all federal agencies to stop using Claude and transition to other AI models within six months, though Microsoft, Google, and other commercial partners have said they will continue working with the company on non-Pentagon projects.
