Anthropic announced on Friday that it plans to legally contest the Pentagon’s recent decision labeling the AI firm as a supply-chain risk. The move comes just hours after Donald Trump directed all federal agencies to halt engagements with the company.

The designation effectively bars Anthropic from participating in government contracts, raising questions about the firm’s access to federally funded AI projects. Details on the legal strategy have not been disclosed, but the company signaled its intention to vigorously defend its reputation and continued participation in critical AI research initiatives.

This development adds another layer of tension to the ongoing scrutiny of AI companies by U.S. federal authorities, as debates over national security, supply-chain integrity, and technological leadership intensify.