Justice Department Says Anthropic Can't Be Trusted With Warfighting Systems

"The First Amendment is not a license to unilaterally impose contract terms on the government, and Anthropic cites nothing to support such a radical conclusion. Justice Department attorneys wrote this in their response, arguing that Anthropic's First Amendment claims lack legal merit in the context of government contracting decisions."

"Justice Department attorneys described Anthropic's concerns about potentially losing business as legally insufficient to constitute irreparable injury and called on the judge to deny the company a reprieve. The government argued that financial losses alone do not warrant halting the supply-chain risk designation during litigation."

"The Trump administration was motivated to act because of concerns about Anthropic's potential future conduct if it retained access to government technology systems. No one has purported to restrict Anthropic's expressive activity, the attorneys wrote, distinguishing between business restrictions and speech restrictions."

The Trump administration filed a court response arguing it did not violate Anthropic's First Amendment rights by designating the AI developer a supply-chain risk that bars it from defense contracts. The Justice Department contends the First Amendment does not permit companies to impose contract terms on the government. Anthropic is challenging the Pentagon's decision in federal court in San Francisco, arguing the administration overstepped its authority. The designation could cost Anthropic billions in expected revenue. Anthropic seeks to resume normal business operations pending litigation resolution. A hearing is scheduled for the following Tuesday to determine whether to grant Anthropic temporary relief. The government claims concerns about Anthropic's potential future conduct justified the action and that no expressive activity was restricted.

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