Piousbox

A U.S. federal judge has ruled that the Pentagon acted unlawfully when it designated AI company Anthropic a national security supply-chain risk, blocking the government from enforcing the blacklist.

The dispute began after Anthropic refused to allow its Claude AI models to be used for mass domestic surveillance or fully autonomous weapons. Defense Secretary Pete Hegseth subsequently designated the company a supply-chain risk, potentially cutting Anthropic off from federal contracts and causing billions of dollars in losses.

Judge Rita Lin ruled that the designation amounted to unlawful retaliation for Anthropic's protected speech and violated the company's constitutional rights. She also found that the Pentagon lacked a sufficient legal basis for the designation, calling the action "illegal and baseless."

The decision is a significant victory for Anthropic and could have broader implications for how the U.S. government handles AI companies that impose safety restrictions on military use. The government is expected to appeal, while a separate case involving Anthropic's eligibility for civilian federal contracts remains pending.