Anthropic Seeks Court Relief as Government Prepares Broader Ban

In a federal courtroom on Tuesday, AI company Anthropic failed to secure a guarantee from the Trump administration that it would face no further penalties. The request came during a scheduling hearing for one of two lawsuits the company filed this week, challenging its recent designation as a national supply-chain risk.

Justice Department attorney James Harlow declined to offer any such assurance to Judge Rita Lin. According to a White House source, the administration is concurrently finalizing an executive order to formally ban the use of Anthropic's technology across the federal government.

Anthropic's legal troubles stem from a dispute with the Pentagon that began months ago. The company refused to sign a blanket agreement allowing its current AI tools to be used by the military for any lawful purpose, citing concerns over potential surveillance and autonomous weaponry. The Defense Department responded by labeling the company a risk, a move Anthropic argues is unconstitutional and has already cost it billions in revenue as clients retreat.

During the hearing, Anthropic's attorney, Michael Mongan, argued the company is suffering "irreparable injuries" each day. Judge Lin agreed to an expedited schedule, setting a preliminary hearing for March 24 in San Francisco, though not as soon as the company wanted.

Legal observers note the case tests the limits of executive power. "It is an absurd stretch of the English language to equate 'does not agree to every demand' with 'sabotage,'" said Georgetown law professor David Super, referencing the statute used against Anthropic.

While Anthropic fights the designation in court and through a Pentagon appeal, the practical fallout is spreading. Rivals OpenAI and Google are advancing their own defense contracts, and software firms relying on Anthropic's Claude AI are weighing alternatives. Even if the courts rule in Anthropic's favor, experts say the administration's aggressive stance may achieve a broader chilling effect, warning other technology contractors about the cost of defying government demands.

Source: Wired