Judge says Pentagon's case against Anthropic supply chain risk label is weakening

Judge says Trump admin still lacks evidence for Anthropic 'supply chain risk' label

During a Thursday hearing, a judge said the Trump administration hasn't presented enough evidence to justify labeling Anthropic a supply chain risk and banning the federal government from using the company's technology. Bloomberg and Axios were among the first to report the news. The dispute stems from stalled contract negotiations between Anthropic and the Department of Defense. Anthropic said it didn't want its AI used for mass surveillance of Americans or for targeting or firing decisions involving lethal weapons, arguing the technology wasn't ready. The Pentagon countered that a private company shouldn't dictate how the military uses technologies, and said it would use the tools in "lawful" ways. The government has also argued that Anthropic's public criticism of the DoD justifies the ban -- logic that U.S. District Judge Rita Lin called "really troubling," warning it could set a precedent of retaliating against federal contractors who disagree with the administration. The DOD further claimed Anthropic could potentially disable or alter its AI models during warfighting operations -- a claim that experts say lacks evidence. Lin agreed, saying she saw no proof Anthropic could alter a delivered model or "flip some kind of kill switch." Thursday's hearing was part of one of two lawsuits Anthropic filed against the DOD in March, challenging the ban and risk designation. The other is being heard in Washington. Lin, who temporarily blocked the ban in March, is now weighing whether to make that order permanent.

The Pentagon's Case Against Anthropic Isn't Going Well

The Department of Defense labeled AI lab Anthropic a supply-chain risk after the company refused to agree to allow the Pentagon to use its models for autonomous weapons systems and domestic surveillance. It seems the company isn't just winning the moral argument on this front, but the legal one, too. According to Axios, the judge hearing Anthropic's challenge to the Trump administration's designation has thus far not found the Pentagon's case to be particularly compelling. Per the report, U.S. District Judge Rita Lin wasted little time pouring cold water on the federal government's position. "I don't see additional evidence from the government really justifying what it did. If anything, it seems like the record, in some ways, has gotten worse for the government," she reportedly said. She also did not seem convinced by the Pentagon's apparent argument that it was concerned Anthropic would mess with its model to prevent the military from using it how they intended. "I don't see evidence that Anthropic could alter the model after it was delivered or flip some kind of kill switch," she said, per Axios. This doesn't come as a major surprise, given Judge Lin's general vibe since this case landed in her court. Back in March when Anthropic first brought its challenge to the government's designation, the judge said that "it looks like an attempt to cripple Anthropic." She ultimately granted a temporary injunction on the government's attempt to basically blacklist the AI firm. You'll recall the origin of this whole fight came earlier this year when negotiations between Anthropic and the Department of Defense fell through after the company refused to agree to a deal that would have allowed the Pentagon to use its AI models for "all lawful purposes." Anthropic reportedly sought to clarify that it would not include using the model to launch weapons without human involvement or to perform surveillance on American citizens. The Pentagon was unwilling to agree to honor Anthropic's redlines. Under a normal administration, that would likely just lead to the government moving on to another company. Under the Trump administration, though, refusal to comply makes you an enemy of the country. Trump and company moved to label Anthropic a supply chain risk, a designation typically reserved for foreign adversaries, not domestic companies. Getting slapped with that tag meant the rest of the federal government would have to stop doing business with Anthropic, which would be a blow to the company. Instead, the whole thing is in limbo -- though it's not looking great for the administration. Of course, they could just cancel the contracts and do business with less scrupulous AI companies. There are plenty willing to abandon their beliefs for a nice, fat contract, after all.

Judge says government's case got "worse" in Anthropic fight

Why it matters: The upcoming decision will mark the next chapter in what's expected to be a lengthy legal battle between the government and an AI company that's simultaneously helping shape the government's AI safety rules. Driving the news: "I don't see additional evidence from the government really justifying what it did. If anything, it seems like the record, in some ways, has gotten worse for the government," U.S. District Judge Rita Lin said within the first five minutes of opening the hearing. * "I don't see evidence that Anthropic could alter the model after it was delivered or flip some kind of kill switch," she added. * Both Anthropic and the Pentagon have asked the judge to grant summary judgement in their favor. Catch up quick: The dispute began early 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 when the Pentagon designated Anthropic a national security and supply-chain risk earlier this year, leading the AI lab to sue. At a March hearing, Lin called the administration's treatment of the company "troubling" and said it appeared to be "an attempt to cripple Anthropic." * Lin later temporarily blocked the Defense Department's ban, finding that Anthropic had shown a likelihood of success on the merits and would suffer irreparable harm without an injunction. What's next: Lin is not expected to rule from the bench, and there is no deadline for her decision. She typically issues written decisions after hearings.