Anthropic is suing the Department of Defense after the Trump administration labeled the company a "supply chain risk" and canceled its government contracts when Anthropic refused to allow its AI model Claude to be used for domestic surveillance or autonomous weapons. Fortune reports: The lawsuit, filed Monday in the U.S. District Court for the Northern District of California, calls the administration's actions "unprecedented and unlawful" and claims they threaten to harm "Anthropic irreparably." The complaint claims that government contracts are already being canceled and that private contracts are also in doubt, putting "hundreds of millions of dollars" at near-term risk.

An Anthropic spokesperson told Fortune: "Seeking judicial review does not change our longstanding commitment to harnessing AI to protect our national security, but this is a necessary step to protect our business, our customers, and our partners." "We will continue to pursue every path toward resolution, including dialogue with the government," they added.

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