EU Tech Regulation

Anthropic filed suit against the US Department of Defense on March 9 over designation as a supply chain security risk, marking the first legal challenge by a major AI lab to national security restrictions. The lawsuit comes as Google agrees to provide AI agents to the Pentagon and OpenAI's hardware chief resigns following a defense contract, signaling a strategic divide in how AI companies handle government work.

Europe faces a strategic dilemma as AI governance fractures along geopolitical lines, with the Pentagon banning Anthropic's Claude and India joining US supply chains. French AI leader Arthur Mensch argues the real battle is open versus closed AI systems, not geography—a debate with direct implications for Europe's AI Act and competitive positioning.