A US federal judge has blocked the Pentagon from enforcing its decision to label Anthropic a national security supply-chain risk. The ruling comes after the AI company challenged the designation, arguing that it was retaliation for refusing to allow Claude to be used for autonomous weapons and certain surveillance operations.
A US federal judge has blocked the Pentagon from blacklisting Anthropic as a national security supply-chain risk, delivering a setback to the US government in its dispute with the artificial intelligence company.
US District Judge Rita Lin ruled on Thursday that the Pentagon’s decision was “illegal and baseless”. In a 59-page order, she said the government could not use national security as a justification to penalise a company over its position on AI use, reports Reuters.
“The empty invocation of national security is not a blank check to punish and retaliate against government critics,” Lin wrote.
The case follows Anthropic’s decision to restrict how the US military could use its Claude AI models. The company has said it does not believe current AI systems are reliable enough to operate autonomous weapons safely. It has also opposed the use of its technology for domestic surveillance, citing concerns over civil liberties.
The Pentagon took action after Anthropic refused to remove those restrictions. Defence Secretary Pete Hegseth designated the company a national security supply-chain risk, preventing it from taking part in some military contracts.
Anthropic said the decision could cost it billions of dollars in lost business and cause significant reputational damage.
Anthropic challenges Pentagon decision
Anthropic sued the government in a California federal court on March 9, arguing that the Pentagon had exceeded its authority.
The company also claimed that the designation violated its constitutional rights. It argued that the government had retaliated against it because of its views on AI safety, raising First Amendment concerns. Anthropic also said it was not given an opportunity to challenge the designation before it was imposed, which it argued violated its Fifth Amendment right to due process.
The company said the Pentagon’s action was unsupported by evidence and inconsistent with its previous assessment of Claude, which had been used and praised by the military.
The designation was unusual because it was the first publicly known instance of a US company being classified as a supply-chain risk under the government procurement law involved in the case. The mechanism is intended to protect military systems from potential infiltration or sabotage by foreign adversaries.
Pentagon says restrictions could affect military operations
The Justice Department disputed Anthropic’s claims and told the court that the designation was not based on the company’s views about AI safety.
Instead, the government said Anthropic’s refusal to accept certain contractual conditions created concerns about how the Pentagon could rely on Claude. It argued that restrictions imposed by the company could create uncertainty and potentially disrupt military systems during operations.
The latest ruling does not end the wider legal dispute between Anthropic and the US government.
The company has another lawsuit pending in Washington, DC, challenging a separate Pentagon supply-chain risk designation. That case could affect Anthropic’s ability to secure civilian government contracts.
The dispute highlights the growing tension between AI companies setting limits on how their models can be used and government agencies seeking broader access to the technology for defence and national security purposes.
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