Google-backed scientists push judge to lift Anthropic’s US supply-chain risk label
Anthropic PBC warns it could lose up to billions in 2026 revenue after the Pentagon designated it a US supply-chain risk, prompting over 100 clients to reconsider contracts and delaying a $50 million deal. AI scientists and Google investors urged Judge Lin to lift the designation before a March hearing.
1. Legal Dispute and Financial Threat
In early March Anthropic PBC sued the Defense Department over its designation as a US supply-chain risk, which its CFO estimates could cost the startup hundreds of millions to billions in 2026 revenue by spooking more than 100 enterprise clients and pausing negotiations on a $50 million deal.
2. Google-backed Support from AI Community
A coalition of AI scientists and Google investors submitted a joint letter to Judge Rita Lin urging removal of the risk designation and withdrawal of related directives, warning that the legal principles at stake threaten any federal contractor whose views conflict with government policy.