Anthropic has sued the US Department of Defense, challenging the Pentagon’s decision to designate the AI company as a supply chain risk.

The company has filed two lawsuits, accusing the Pentagon of using the designation to punish the company on ideological grounds.

Being formally called out as a supply chain risk means the company can no longer do business with the federal government, or with other organisations that work with the government.

The risk level is usually reserved for companies that post a national security risk.

The fallout between the Department of Defense and Anthropic came about because Anthropic wanted to impose guardrails on the use of its AI technology in a new $200-million deal, aimed at ensuring it would not be used for surveillance of American citizens or to guide autonomous weapons.

When the deadline to reach a compromise passed, the deal went to OpenAI instead.