Judge Blocks Pentagon's Blacklisting of Anthropic Over AI Safety Restrictions

A Judge Has Blocked the Pentagon's Attempt to Blacklist Anthropic

A federal judge on Thursday barred the Trump administration from designating Anthropic a national security risk over a dispute about the use of its AI models, ruling that the designation amounted to unconstitutional retaliation. The decision handed down by US district judge Rita Lin in California vacated the February 27 decision by defense secretary Pete Hegseth to label Anthropic a "supply-chain risk" and make the company ineligible for federal contracts. The ruling also lifted an additional punitive measure by Hegseth that prevented contractors or suppliers to the US military from doing business with Anthropic, a position Lin called "arbitrary, capricious, an abuse of discretion, and otherwise not in accordance with law." "Though the Department of War is undisputedly free to select the AI vendor of its choice, the evidence demonstrates that the broad measures imposed on Anthropic were illegal and baseless," Lin wrote in a 59-page ruling. The judge also ruled that nine agencies -- including the Pentagon, the Treasury Department, the State Department, the Department of Homeland Security -- had improperly imposed sanctions on Anthropic. The ruling removes those penalties. However, Lin affirmed that the Pentagon is not required to use Anthropic's models, and the ruling does not prevent the Pentagon from electing to simply use other models. A Pentagon spokesperson could not immediately be reached for comment, but the department is expected to appeal. In a statement, Anthropic spokesperson Danielle Cohen said: "We welcome the court's ruling that this supply chain risk designation was unlawful. We remain focused on working productively with the government to harness AI for our national security." The case stems from a bitter dispute earlier this year between the Pentagon and Anthropic over a $200 million deal to use the AI lab's Claude models military applications. The rift began after reports that the US had used Claude in the operation to capture Venezuelan president Nicolas Maduro. After the operation, a Palantir employee relayed concerns from an Anthropic staffer to US officials about how its models had been used. Got a Tip?Are you a current or former Trump administration employee who wants to talk about what's happening? We'd like to hear from you. Using a nonwork phone or computer, contact the reporter securely on Signal at hugolowell.15. In negotiations, Anthropic insisted on certain limits on how its models could be deployed, including support of lethal autonomous weapons and mass surveillance systems. But Hegseth rejected any curbs, contending that a contractor could not dictate how the technology could be used once deployed and insisted the contract allowed "all lawful use." After negotiations broke down in February, Hegseth was widely seen as punishing Anthropic by designating it a "supply chain risk," a national security tool that blacklisted the company from doing business with the federal government. The Pentagon said at the time that the supply chain risk label was appropriate because giving Anthropic access to any classified systems would "introduce unacceptable risk" if the AI lab could disable or alter its technology, for instance, at a time of war. Anthropic filed two lawsuits in response -- one in federal district court in California and one at the US court of appeals for the District of Columbia -- accusing the Pentagon of violating its First and Fifth Amendment protections on ideological grounds. The DC case is ongoing. Anthropic's top AI models are considered some of the best in the world. Separate from the supply chain risk designation, Anthropic's models recently became subject to the Trump administration's AI oversight framework due to their powerful capabilities. Lin cited the administration's involvement in reviewing advanced Anthropic models as part of her ruling. "Even now, the government is discussing collaboration with Anthropic on its new model, Mythos, in an array of sensitive contexts," she wrote. "None of that is consistent with a genuine fear that Anthropic is a saboteur who would poison its software to harm national security." Additional reporting by Maxwell Zeff.

Anthropic was illegally blacklisted by the Trump administration, court rules

On Thursday, a judge ruled that the Pentagon's blacklisting of Anthropic earlier this year was unconstitutional, delivering the AI lab a win in a monthslong rollercoaster of a battle with the Trump administration. The lawsuit, filed in March in a California district court, accused the Trump administration of unlawfully retaliating against Anthropic for setting "red lines," or unacceptable military use cases of its AI technology. "The empty invocation of national security is not a blank check to punish and retaliate against government critics," Judge Rita F. Lin, a district judge in the northern district of California, wrote in the ruling. She also wrote that the actions were "unlawful retaliation in violation of the First Amendment," adding that Defense Secretary Pete Hegseth's decision to designate Anthropic a supply chain risk "was arbitrary and capricious. Though the Department of War is undisputedly free to select the AI vendor of its choice, the evidence demonstrates that the broad measures imposed on Anthropic were illegal and baseless." It all started this past winter, when Hegseth decided to renegotiate all AI labs' current contracts with the military to allow the Pentagon to use AI for "any lawful use," which would expand the Pentagon's authority significantly. Most AI labs ended up signing onto the new terms, but Anthropic stood firm on setting two restrictions: not allowing for its AI to be used for mass surveillance of Americans or for lethal autonomous weapons (i.e., AI systems with the power to kill targets without human oversight). Anthropic's refusal to cooperate kicked off a high-stakes back-and-forth of intensifying pressure on both sides, followed by a bevy of insults from Department of Defense officials and a final ultimatum from the Trump administration. Less than 24 hours before that ultimatum, Anthropic CEO Dario Amodei issued a statement that the company wouldn't change its stance, writing that the company has "never raised objections to particular military operations nor attempted to limit use of our technology in an ad hoc manner" but that in a "narrow set of cases, we believe AI can undermine, rather than defend, democratic values." After that, Anthropic was named a "supply chain risk," a classification that is usually reserved for national security threats, and the Pentagon moved to replace its influence in the Department of Defense by signing deals with seven other AI labs, including Google, Microsoft, OpenAI, and SpaceX. Anthropic fought back with the lawsuit, and in March, Judge Lin sided with the company, temporarily blocking the Pentagon's blacklist. "The Department of War's records show that it designated Anthropic as a supply chain risk because of its 'hostile manner through the press,'" she wrote in the order at the time. "Punishing Anthropic for bringing public scrutiny to the government's contracting position is classic illegal First Amendment retaliation." In a statement on Thursday, Anthropic spokesperson Danielle Ghiglieri said, "We welcome the court's ruling that this supply chain risk designation was unlawful. We remain focused on working productively with the government to harness AI for our national security so all Americans benefit from this technology."

US judge blocks Pentagon's Anthropic blacklisting

August 27(Reuters) - A U.S. judge on Thursday blocked the Pentagon's blacklisting of Anthropic, the latest turn in the Claude maker's high-stakes fight with the military over AI safety on the battlefield. Anthropic's lawsuit in California federal court alleges that Defense Secretary Pete Hegseth overstepped his authority when he designated Anthropic a national security supply-chain risk, a label the government can apply to companies that expose military systems to potential infiltration or sabotage by adversaries. Hegseth's unprecedented move, which followed Anthropic's refusal to allow the military to use AI chatbot Claude for U.S. surveillance or autonomous weapons, blocked Anthropic from certain military contracts. Anthropic ⁠executives have said it could cost the company billions of dollars in lost business and reputational harm. Anthropic says that AI models are not reliable enough to be safely used in autonomous weapons and that it opposes domestic surveillance as a violation of rights, but the Pentagon says private companies should not be able to constrain military action. U.S. District Judge Rita Lin, an appointee of former Democratic President Joe Biden, made the ruling in a 59-page order where she found that the Pentagon's decision was "illegal and baseless." "The empty invocation of national security is not a blank check to punish and retaliate against government critics," she wrote. Anthropic's designation was the first time a U.S. company has been publicly designated ⁠a supply-chain risk under an obscure government-procurement statute aimed at protecting military systems from foreign sabotage. In its March 9 lawsuit, Anthropic alleged the government violated its right to free speech under the First Amendment of the Constitution by retaliating against its views on AI safety. The company said it was not given a chance to dispute the designation, in violation of its Fifth ⁠Amendment right to due process. The lawsuit says the decision was unlawful, unsupported by facts and inconsistent with the military's past praise of Claude. The Justice Department countered that Anthropic's refusal to lift the restrictions could cause uncertainty in the Pentagon over how it could ⁠use Claude and risk disabling military systems during operations, according to a court filing. The government said the designation stemmed from Anthropic's refusal to accept contractual terms, not its views on AI safety. Anthropic has a second lawsuit pending in Washington, ⁠D.C., over a separate Pentagon supply-chain risk designation that could lead to its exclusion from civilian government contracts. Reporting by Jack Queen in New York; Editing by Noeleen Walder and Matthew Lewis Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Government * Constitutional Law * Civil Rights * Public Policy Jack Queen Thomson Reuters Jack Queen covers major lawsuits against the Trump administration involving urgent questions of executive power and how their resolution could affect the law and the legal profession in the years to come. Previously, he covered criminal and civil cases against Trump during the interim of his presidential terms, including gavel-to-gavel coverage of his historic hush money trial in New York and his civil fraud trial, which ended in a half-billion-dollar judgment. Jack has also covered high-profile defamation cases including the Dominion Voting Systems' lawsuit against Fox News, which settled for $787 million after intense pretrial litigation. Based in New York, he specializes in breaking news as well as analysis, explainers and other explanatory reporting.

Judge says Pentagon's measures against Anthropic were 'illegal and baseless'

A federal judge has ruled in favor of artificial intelligence company Anthropic in its legal battle against the Pentagon after the government labeled the company as a supply chain risk earlier this year. U.S. District Judge Rita Lin issued a written order Thursday night that the Pentagon acted illegally by punishing the AI company for its criticism of the Department of Defense's views on AI use. The government is expected to fight the ruling. The dispute between the AI company and the government broke out in February when President Donald Trump and Defense Secretary Pete Hegseth accused Anthropic of endangering national security and designated the company a supply chain risk. Anthropic CEO Dario Amodei refused to back down over concerns the company's products could be used for mass surveillance or autonomous armed drones. Lin wrote that the government's actions "were based on a desire to make a public example out of Anthropic for its 'arrogance' in criticizing the government, not based on any articulable basis to believe that Anthropic would actually sabotage its model." An Anthropic spokesperson said in a statement that they welcome the judge's ruling: "We remain focused on working productively with the government to harness AI for our national security so all Americans benefit from this technology." The White House did not immediately respond to a request for comment. Earlier in the legal proceedings, Lin had temporarily blocked the Pentagon from labeling the company as a supply chain risk and blocked enforcement of Trump's social media directive ordering all federal agencies to stop using Anthropic and its chatbot Claude. In a hearing July 30, Lin had said that the government's position was "really troubling" to her and that it seemed "at odds to me with the First Amendment." She also said she believed the record had "gotten worse for the government" over time. In that same hearing, Department of Justice lawyers argued that the nature of AI models is "so staggeringly enormous and opaque" that the Defense Department cannot evaluate it in the same way it would a physical piece of hardware. Anthropic lawyer Michael Mongan said in that hearing that the government's actions "profoundly harm Anthropic" and that they "threaten more broadly to chill speech and debate on a very important issue." Anthropic has also filed a separate and narrower case that is still pending in the federal appeals court in Washington, D.C. That case involves a different rule the Pentagon is using to try to declare Anthropic a supply chain risk.

Judge Rules Trump Administration's Blacklisting of Anthropic Was Illegal

Sign up for the On Tech newsletter. Get our best tech reporting from the week. Get it sent to your inbox. The Trump administration acted illegally when it labeled the artificial intelligence start-up Anthropic a security risk and barred the company from working with the U.S. government, a federal judge ruled on Thursday. Judge Rita Lin of the U.S. District Court in the Northern District of California wrote in her 59-page ruling that the government had unlawfully retaliated against Anthropic "for constitutionally protected expressive activities" after the A.I. company spoke out about how its technology should be used. "The empty invocation of national security is not a blank check to punish and retaliate against government critics," she wrote. In a statement, Anthropic said it was "pleased the court has ruled that this supply-chain risk designation was unlawful." "We remain focused on working productively with the government to harness A.I. for our national security so all Americans benefit from this technology," the statement added. The Trump administration did not immediately respond to a request for comment. The ruling caps the first of two lawsuits that Anthropic filed in March in response to the Trump administration's action. The second lawsuit, filed in the U.S. Court of Appeals for the District of Columbia Circuit, is ongoing. The Trump administration could appeal Judge Lin's ruling or wait for a decision in the second lawsuit before taking action, a person with knowledge of the matter said. The San Francisco ruling is the latest chapter in the fight between the Trump administration and Anthropic, which is heading toward what may be the biggest-ever initial public offering. The two sides came to blows at the start of the year over a $200 million contract to provide the Pentagon with A.I. technology on classified systems. Anthropic, which is based in San Francisco, insisted that its technology not be used in mass surveillance of Americans or for autonomous lethal weapons. The Pentagon said a private company could not establish policy for the U.S. government. The two sides could not come to an agreement. Defense Secretary Pete Hegseth then announced that Anthropic was a "supply chain risk," a formal designation that had previously been used against foreign companies that the government deemed a national security risk. The designation meant no contractor or supplier that works with the military can do business with Anthropic. On March 9, Anthropic filed two lawsuits to challenge the government designation, arguing that the legal statutes for labeling a company a supply chain risk were narrow and did not apply to American firms. The company also said the label was ideologically motivated to penalize Anthropic, and that the company's First Amendment rights were being violated. Before her ruling, Judge Lin had said the Pentagon's argument that Anthropic's public criticism of the government justified banning the A.I. company from federal work was "really troubling." She also said she saw no evidence to the government's claims that Anthropic could "flip some kind of kill switch" to potentially disable or alter its A.I. models during war.

Trump administration illegally retaliated against Anthropic, judge says

A judge has ruled the US Department of Defense acted unlawfully when it designated artificial intelligence (AI) startup Anthropic a supply chain risk, calling the move "illegal and baseless". The Claude-maker argued in the lawsuit that Defense Secretary Pete Hegeth overstepped his authority with the new designation. It followed Anthropic's refusal to allow the military to use its AI models for things that included surveillance or autonomous weapons. US district judge Rita Lin said in the ruling that citing national security "is not a blank check to punish and retaliate against government critics". The BBC has contacted the Pentagon, White House and Anthropic for comment. Anthropic's lawsuit called the government's actions both "unprecedented and unlawful". The designation calling them a supply-chain risk cited a law aimed at protecting military systems from foreign sabotage. It marked the first time an American company had been publicly designated as such. The Claude-maker said its models were not reliable enough to be safely used in weapons systems for the military. It added that it opposed its use for domestic surveillance as a violation of rights. The Pentagon said at the time that private companies should not be able to constrain military action. The White House had previously said Anthropic was "a radical left, woke company" attempting to control military activity" and argued the military was beholden to the US Constitution, "not any woke AI company's terms of service". Anthropic's executives estimated that the move could cost the company billions of dollars in lost business and reputational harm.

AI firm Anthropic wins case challenging Pentagon blacklisting

The artificial intelligence company Anthropic won a federal lawsuit challenging the Trump administration's decision to brand the company a national security risk earlier this year, blocking it from doing business with the entire government and military contractors. A federal judge in San Francisco ruled Thursday that the government's actions -- justified largely by a four-page memo -- were "illegal and baseless." Anthropic's leaders clashed with top defense officials in February over the Pentagon's demand that it must be allowed to use the company's AI models for any lawful purpose. The company sought guarantees that its systems would not be used to power fully autonomous weapons or carry out mass domestic surveillance. Defense officials refused, and labeled the company a supply chain risk -- a designation with far reaching consequences for Anthropic's business that the judge ruled threatened to "cripple" the company by shutting it out of federal contracts. U.S. District Judge Rita F. Lin in San Francisco ruled Thursday that while the Pentagon was free to pick and choose which contractors it works with, the administration had no basis for taking such sweeping actions. Officials' "contemporaneous words and deeds confirm that the challenged actions were based on a desire to make a public example out of Anthropic for its 'arrogance' in criticizing the government," Lin wrote. Anthropic makes the ChatGPT rival Claude, which has over the past year become popular with software companies for its coding skills. Thursday's ruling follows a preliminary order by the judge in March and represents a stinging rebuke of the Trump administration's handling of the situation. But a separate but overlapping case in Washington is still playing out. The government's lawyers said at a recent hearing in the case that the Pentagon was continuing to remove Anthropic's tools from its systems, and expected to complete the work by the end of September. Anthropic said on Thursday that it welcomed the judge's decision. "We remain focused on working productively with the government to harness AI for our national security so all Americans benefit from this technology," the company said in a statement. The Pentagon and the White House did not immediately respond to a request for comment. Anthropic was the first AI company to be cleared to work on classified government systems in 2024 and initially worked enthusiastically with defense officials. When the battle between the two sides reached its climax in late February, it appeared that the relationship between one of the nation's leading AI companies and the federal government would be left badly damaged. The Trump administration's stance softened in April, when Anthropic announced it had developed a new model called Mythos that had powerful new computer hacking abilities. Federal officials raced to get their hands on the technology to understand the risks it posed, and Anthropic chief executive Dario Amodei visited the White House. Lin wrote in her decision Thursday that the government's ongoing discussions with Anthropic about using Mythos undercut its argument that the company posed a risk. "None of that is consistent with a genuine fear that Anthropic is a saboteur who would poison its software to harm national security," she wrote.

Judge blocks Pentagon's Anthropic blacklist

Why it matters: The ruling marks a major legal victory for Anthropic in its months-long fight with the Trump administration over how the military can use its AI models. Driving the news: "The empty invocation of national security is not a blank check to punish and retaliate against government critics," U.S. District Judge Rita Lin wrote in her 59-page ruling. * Lin noted that the Pentagon continued pursuing work with Anthropic even after the designation: "None of that is consistent with a genuine fear that Anthropic is a saboteur who would poison its software to harm national security." What they're saying: "We are pleased the court has ruled that this supply chain risk designation was unlawful," an Anthropic spokesperson said in a statement. * "We remain focused on working productively with the government to harness AI for our national security so all Americans benefit from this technology." Catch up quick: The dispute kicked off earlier this year after Anthropic and the Pentagon clashed over the military's use of the company's AI models. * The Defense Department sought to use Claude for "all lawful purposes," even in the most sensitive military and intelligence applications. * Anthropic insisted that two areas remain off-limits: mass surveillance of Americans and fully autonomous weapons. * The standoff escalated, with the Pentagon designating Anthropic a national security and supply-chain risk, leading the AI company to sue. What's next: The government is expected to appeal.

US court rules Pentagon ban of Anthropic unlawful

San Francisco (United States) (AFP) - A US federal judge ruled Thursday that sanctions imposed in February by the Trump administration against AI giant Anthropic were illegal, finding that the government had punished the artificial intelligence company for publicly criticizing the Pentagon. "The empty invocation of national security is not a blank check to punish and retaliate against government critics," Judge Rita Lin said in a 59-page decision seen by AFP. She barred the federal agencies named in the lawsuit from enforcing President Donald Trump's order to stop using the tools of Anthropic -- creator of the Claude AI models -- and overturned Defense Secretary Pete Hegseth's designation of the company as a "supply chain risk," a status previously reserved for foreign firms. The ruling makes permanent the temporary suspension of sanctions ordered by the judge in March and takes effect immediately. The government may appeal. "We welcome the court's ruling that this supply chain risk designation was unlawful," an Anthropic spokesperson said Thursday. "We remain focused on working productively with the government to harness AI for our national security so all Americans benefit from this technology." The conflict arose after Anthropic refused to allow the US military to use Claude for fully autonomous lethal weapons or for the mass surveillance of Americans. Trump had lashed out at the company when it took that step. In a February social media post, he called it "a radical left, woke company" and "out-of-control." In Thursday's ruling, the judge said that the sanctions against the company "were based on a desire to make a public example out of Anthropic for its 'arrogance' in criticizing the government" rather than to counter a genuine threat. The military had been using Claude across a range of classified and sensitive systems. According to reports by the Wall Street Journal and Axios, that included during the January operation that captured Venezuelan leader Nicolas Maduro. The supply chain risk designation, formally made in March, had canceled Anthropic's military contracts and barred other Pentagon contractors from using its technology. However, Anthropic's victory is not total. A second sanction imposed by the Pentagon on the same day, based on public procurement regulations, remains in effect pending a court ruling in Washington, where a judge refused to suspend the measure in April. The White House has also bristled at Anthropic CEO Dario Amodei's repeated warnings about the dangers of AI -- including the impact on jobs. Anthropic is expected within weeks to make a public stock market listing that could eclipse SpaceX's record Wall Street debut in June, which raised $86.2 billion.

Federal judge blocks Pentagon blacklisting of Anthropic, calling it 'illegal and baseless'

Anthropic and its CEO Dario Amodei have said AI models are not reliable enough to pilot autonomous weapons, while domestic surveillance is a violation of rights.Jason Henry / Bloomberg via Getty Images file A U.S. judge on Thursday blocked the Pentagon's blacklisting of Anthropic, the latest turn in the Claude maker's high-stakes fight with the military over AI safety on the battlefield. Anthropic's lawsuit in California federal court alleges that Defense Secretary Pete Hegseth overstepped his authority when he designated Anthropic a national security supply-chain risk, a label the government can apply to companies that expose military systems to potential infiltration or sabotage by adversaries. Hegseth's unprecedented move, which followed Anthropic's refusal to allow the military to use AI chatbot Claude for U.S. surveillance or autonomous weapons, blocked Anthropic from certain military contracts. Anthropic ⁠executives have said it could cost the company billions of dollars in lost business and reputational harm. Anthropic says that AI models are not reliable enough to be safely used in autonomous weapons and that it opposes domestic surveillance as a violation of rights, but the Pentagon says private companies should not be able to constrain military action. U.S. District Judge Rita Lin, an appointee of former Democratic President Joe Biden, made the ruling in a 59-page order where she found that the Pentagon's decision was "illegal and baseless." "The empty invocation of national security is not a blank check to punish and retaliate against government critics," she wrote. Anthropic's designation was the first time a U.S. company has been publicly designated ⁠a supply-chain risk under an obscure government-procurement statute aimed at protecting military systems from foreign sabotage. In its March 9 lawsuit, Anthropic alleged the government violated its right to free speech under the First Amendment of the Constitution by retaliating against its views on AI safety. The company said it was not given a chance to dispute the designation, in violation of its Fifth ⁠Amendment right to due process. The lawsuit says the decision was unlawful, unsupported by facts and inconsistent with the military's past praise of Claude. The Justice Department countered that Anthropic's refusal to lift the restrictions could cause uncertainty in the Pentagon over how it could ⁠use Claude and risk disabling military systems during operations, according to a court filing. The government said the designation stemmed from Anthropic's refusal to accept contractual terms, not its views on AI safety. Anthropic has a second lawsuit pending in Washington, ⁠D.C., over a separate Pentagon supply-chain risk designation that could lead to its exclusion from civilian government contracts.

Judge rules Trump administration illegally punished AI firm Anthropic

Joe Walsh is a senior editor for digital politics at CBS News. Joe previously covered breaking news for Forbes and local news in Boston. A judge late Thursday permanently barred the Trump administration from enforcing a set of rules aimed at cutting off Anthropic from the federal government, ruling the administration had unconstitutionally punished the artificial intelligence company for protected speech. The ruling marks a victory for Anthropic in its monthslong legal battle against the administration over its push to impose guardrails on its powerful AI model Claude, which is used by the military. Anthropic sought to prevent Claude from being used for mass surveillance or fully autonomous weapons, but the military argued it should be allowed to use the model for all lawful purposes. With the two sides unable to reach a deal, President Trump ordered federal agencies to stop using Claude earlier this year, and Defense Secretary Pete Hegseth declared the firm a supply chain risk, aiming to prevent private defense contractors from using it to do work for the military. The administration argued those moves were necessary to safeguard national security. In her ruling Thursday, U.S. District Judge Rita Lin of San Francisco declared that those actions violated the First Amendment by punishing it for disagreeing with the government, calling them "unlawful retaliation against Anthropic for constitutionally protected expressive activities." She also said the moves against Anthropic violated the company's due process rights. Lin said her order does not require the government to use Anthropic or stop it from giving another AI firm its business, "so long as those actions are consistent with applicable regulations, statutes, and constitutional provisions." "The government is certainly owed deference on weighty issues of national security," Lin wrote in a 59-page opinion. "But Defendants' contemporaneous words and deeds confirm that the challenged actions were based on a desire to make a public example out of Anthropic for its 'arrogance' in criticizing the government, not based on any articulable basis to believe that Anthropic would actually sabotage its model." This is a breaking story; it will be updated.

Judge Says Pentagon's Measures Against Anthropic Were 'Illegal and Baseless'

A federal judge has ruled in favor of artificial intelligence company Anthropic in its legal battle against the Pentagon after the government labeled the company as a supply chain risk earlier this year. U.S. District Judge Rita Lin issued a written order Thursday night that the Pentagon acted illegally by punishing the AI company for its criticism of the Department of Defense's views on AI use. The government is expected to fight the ruling. The dispute between the AI company and the government broke out in February when President Donald Trump and Defense Secretary Pete Hegseth accused Anthropic of endangering national security and designated the company a supply chain risk. Anthropic CEO Dario Amodei refused to back down over concerns the company's products could be used for mass surveillance or autonomous armed drones. Lin wrote that the government's actions "were based on a desire to make a public example out of Anthropic for its 'arrogance' in criticizing the government, not based on any articulable basis to believe that Anthropic would actually sabotage its model." An Anthropic spokesperson said in a statement that they welcome the judge's ruling: "We remain focused on working productively with the government to harness AI for our national security so all Americans benefit from this technology." The White House did not immediately respond to a request for comment. Earlier in the legal proceedings, Lin had temporarily blocked the Pentagon from labeling the company as a supply chain risk and blocked enforcement of Trump's social media directive ordering all federal agencies to stop using Anthropic and its chatbot Claude. In a hearing July 30, Lin had said that the government's position was "really troubling" to her and that it seemed "at odds to me with the First Amendment." She also said she believed the record had "gotten worse for the government" over time. In that same hearing, Department of Justice lawyers argued that the nature of AI models is "so staggeringly enormous and opaque" that the Defense Department cannot evaluate it in the same way it would a physical piece of hardware. Anthropic lawyer Michael Mongan said in that hearing that the government's actions "profoundly harm Anthropic" and that they "threaten more broadly to chill speech and debate on a very important issue." Anthropic has also filed a separate and narrower case that is still pending in the federal appeals court in Washington, D.C. That case involves a different rule the Pentagon is using to try to declare Anthropic a supply chain risk.

Judge rules Pentagon's supply chain risk designation for Anthropic was illegal

A federal judge in California ruled on Thursday the Pentagon's blacklisting of the artificial intelligence firm Anthropic earlier this year was illegal, violating the First Amendment. In a ruling Thursday evening, Judge Rita Lin said the Trump administration retaliated against the Claude-maker for its "constitutionally protected activity," and violated the Due Process clause of the Fifth Amendment "Though the Department of War is undisputedly free to select the AI vendor of its choice, the evidence demonstrates that the broad measures imposed on Anthropic were illegal and baseless," Lin wrote in the 59-page ruling. Anthropic sued the Trump administration last March, challenging the Pentagon's decision to label the company a supply chain risk after negotiations fell apart over safety guardrails. Anthropic demanded its technology to not be used in fully autonomous lethal weapons or for the mass surveillance of Americans, while the Pentagon insisted it be allowed to use Anthropic's Claude for "all lawful uses." In doing so, Pentagon leadership directed offices to cease using Anthropic's products. Announcing the designation at the time, Defense Secretary Pete Hegseth said "America's warfighters will never be held hostage by the ideological whims of Big Tech." The AI firm argued in court the Pentagon retaliated against the company over what it believes is a "protected viewpoint" of the company. Lin agreed, stating Anthropic CEO Dario Amodei was "consistent with a longstanding practice of public speech on AI safety," when he publicly debated the safety restrictions required for Claude. The Department of Justice (DOJ) argued speech used within contract negotiations is not protected, but Lin said that position is "unsupported." "Defendants claim that because of Anthropic's 'increasingly hostile manner through the press' and its criticism of the Department of War's views on AI use, defendants 'cannot trust Anthropic to ensure the integrity of its models,'" Lin wrote. "Neither the Constitution nor the federal statute invoked by defendants allows them to impose sweeping penalties based principally on Anthropic's critique of the Administration's views," the judge continued. A spokesperson for Anthropic said the company "welcomed" the ruling. "We remain focused on working productively with the government to harness AI for our national security so all Americans benefit from this technology," the spokesperson added. The DOJ nor Department of Defense immediately responded to request for comment. While the ruling wraps up Anthropic's suit in northern California, the company also filed suit over the Trump administration's actions in Washington, D.C. A three-judge panel in the D.C. Circuit Court of Appeals heard from both sides in May but have not released a decision.

Pentagon blacklisting Anthropic: US judge blocks Pentagon's Anthropic blacklisting

Anthropic's lawsuit in California federal court alleges that Defense Secretary Pete Hegseth overstepped his authority when he designated Anthropic a national security supply-chain risk, a label the government can apply to companies that expose military systems to potential infiltration or ⁠sabotage by ⁠adversaries. A U.S. judge on Thursday blocked the Pentagon's blacklisting of Anthropic, the latest turn in the Claude maker's high-stakes fight with the military over AI safety on the battlefield. Anthropic's lawsuit in California federal court alleges that Defense Secretary Pete Hegseth overstepped his authority when he designated Anthropic a national security supply-chain risk, a label the government can apply to companies that expose military systems to potential infiltration or ⁠sabotage by ⁠adversaries. Hegseth's unprecedented move, which followed Anthropic's refusal to allow the military to use AI chatbot Claude for U.S. surveillance or autonomous weapons, blocked Anthropic from certain military contracts. Anthropic executives have said it could cost the company billions of dollars in lost business and reputational harm. Anthropic says that AI models are not reliable enough to be safely used in autonomous weapons and that it opposes domestic surveillance as a violation of rights, but the Pentagon says ⁠private companies should not be able to constrain military action. U.S. District Judge Rita Lin, an appointee of former Democratic President Joe Biden, made the ruling in a 59-page ⁠order where she found that the Pentagon's decision was "illegal and baseless." "The empty invocation of national security is not a blank check to punish and retaliate against government critics," she wrote. Anthropic's designation was the first time a U.S. company has been publicly designated a supply-chain risk under an obscure government-procurement statute aimed at protecting military systems from foreign sabotage. In its March 9 lawsuit, Anthropic alleged the government violated its right to free speech under the First Amendment of the Constitution by retaliating against its views on AI safety. The company said it was not given a chance to dispute the designation, in violation of its Fifth Amendment right to due process. The lawsuit says the decision was ⁠unlawful, unsupported by facts and inconsistent with the military's past praise of Claude. The Justice Department countered that Anthropic's refusal to lift the restrictions could cause uncertainty in the Pentagon over how it could use Claude and risk disabling military systems during operations, according to a court filing. The government said the designation stemmed from Anthropic's refusal to accept contractual terms, not its views on AI safety. Anthropic has a second lawsuit pending in Washington, D.C., over a separate Pentagon supply-chain risk designation that could lead to its exclusion from civilian government contracts.

US Judge Blocks Pentagon's Anthropic Blacklisting

August 27(Reuters) - A U.S. judge on Thursday ⁠blocked ⁠the Pentagon's blacklisting of Anthropic, the ⁠latest turn in the Claude maker's high-stakes fight with the military over AI safety on the battlefield. Anthropic's lawsuit in California federal court alleges that Defense Secretary Pete Hegseth overstepped his authority when he designated Anthropic a national security supply-chain risk, a label the government can apply to companies that expose military systems to ⁠potential infiltration or ⁠sabotage by adversaries. Hegseth's unprecedented move, which followed Anthropic's refusal to allow the military to use AI chatbot Claude for U.S. surveillance or autonomous weapons, blocked Anthropic from certain military contracts. Anthropic executives have said it could cost the company billions of dollars in lost business and reputational harm. Anthropic says that AI models are not reliable enough to be safely used in autonomous weapons and that it ⁠opposes domestic ⁠surveillance as a violation ⁠of rights, but the Pentagon says private companies should not be able to constrain military action. U.S. District Judge Rita Lin, an appointee of former Democratic ⁠President Joe Biden, made the ruling in a 59-page order where she found that the Pentagon's decision was "illegal and baseless." "The empty invocation of national security is not a blank check to punish and retaliate against government critics," she wrote. Anthropic's designation was the first time a U.S. company has been publicly designated a ⁠supply-chain risk under an obscure government-procurement statute aimed at protecting military systems from foreign sabotage. In ⁠its March 9 lawsuit, Anthropic alleged the government violated its right to free speech under the First Amendment of the Constitution by retaliating against its views on AI safety. The company said it was not given a chance to dispute the designation, in violation of its Fifth Amendment right to due process. The lawsuit says the decision was unlawful, unsupported by facts and inconsistent with the military's past praise of Claude. The Justice Department countered that Anthropic's refusal to lift the restrictions could cause uncertainty in the Pentagon over how it could use Claude ⁠and risk disabling military systems during operations, according to a court filing. The government said the designation stemmed from Anthropic's refusal to accept contractual terms, not its views on AI safety. Anthropic has a second lawsuit pending in Washington, D.C., over a separate Pentagon supply-chain risk designation that could lead to its exclusion from civilian government contracts. (Reporting by Jack Queen in New York; Editing by Noeleen Walder and Matthew Lewis)