US Govt Won’t Rule Out Further Action Against Anthropic

At the first court hearing challenging sanctions imposed by the US federal government, AI giant Anthropic asked the government to promise it would not impose further penalties. The US Justice Department declined.

“I am not prepared to offer any commitments on that issue,” James Harlow, a Justice Department lawyer, said in the hearing, according to WIRED.

Instead, the administration appears ready to escalate the dispute. US President Donald Trump is finalising an executive order that would formally prohibit federal agencies from using Anthropic’s tools, according to an Associated Press report. 

Earlier, Anthropic filed a lawsuit accusing the administration of unconstitutionally designating the company a “supply-chain risk”, arguing that the designation has already jeopardised billions of dollars in revenue as existing customers reconsider contracts and prospective partners demand new terms.

The company is seeking a preliminary injunction that would suspend the designation and prevent the administration from taking further punitive steps while the case proceeds.

A separate lawsuit, filed in Washington, DC, is temporarily on hold while Anthropic pursues an administrative appeal to the Department of War (formerly Department of Defence).

The dispute stems from Anthropic’s refusal to allow its AI systems to be used by the US military for applications such as mass domestic surveillance, developing autonomous weapons, or missile launches without human oversight.

The Pentagon maintains that decisions over military deployment rest with the government. Meanwhile, rivals including OpenAI and Google are advancing defence contracts that could replace Anthropic’s technology.