CALIFORNIA: A US federal judge has blocked the Pentagon’s decision to blacklist artificial intelligence company Anthropic, ruling that the government’s designation of the Claude maker as a national security supply-chain risk was illegal and baseless.
The ruling represents the latest development in Anthropic’s high-stakes legal battle with the US military over how artificial intelligence should be used in warfare, surveillance and other national security operations.
US District Judge Rita Lin issued the decision in a 59-page order following a lawsuit filed by Anthropic in a California federal court. The company had accused Defence Secretary Pete Hegseth of exceeding his authority when he designated Anthropic a national security supply-chain risk.
The designation is a government classification that can be applied to companies considered capable of exposing military systems to potential infiltration or sabotage by foreign adversaries.
The Pentagon’s action came after Anthropic refused to allow the US military to use its Claude AI models for certain surveillance operations and autonomous weapons.
Anthropic has argued that current AI models are not sufficiently reliable to be safely deployed in autonomous weapons. The company has also opposed domestic surveillance, describing it as a violation of individual rights.
Judge Lin rejected the Pentagon’s justification for the blacklist, warning that national security could not be used as a basis for retaliating against companies over their positions.
“The empty invocation of national security is not a blank check to punish and retaliate against government critics,” Lin wrote.
Anthropic welcomed the ruling, saying it remained committed to working with the US government on the responsible use of artificial intelligence for national security.
The company’s executives had previously warned that the Pentagon’s decision could cost Anthropic billions of dollars in lost business and cause significant reputational damage.
The Pentagon had barred Anthropic from certain military contracts following the company’s refusal to accept the government’s requested terms.
The Justice Department, however, argued that Anthropic’s restrictions on the use of Claude could create uncertainty for the Pentagon and potentially put military systems at risk during operations.
According to the government, the designation was based on Anthropic’s refusal to accept contractual terms rather than the company’s views on AI safety.
Anthropic disputed that position, maintaining that the Pentagon’s decision was unlawful, unsupported by facts and inconsistent with the military’s previous assessment of Claude.
The company also argued that the government had violated its constitutional rights by retaliating against its position on AI safety.
In its March 9 lawsuit, Anthropic alleged that the Pentagon’s action violated its First Amendment right to free speech. It further argued that it had not been given an opportunity to challenge the designation, which it said violated its Fifth Amendment right to due process.
The Pentagon designation was reportedly the first public instance of a US company being classified as a supply-chain risk under the government-procurement statute used to protect military systems from foreign sabotage.
The ruling does not end the wider legal dispute between Anthropic and the US government.
Anthropic has another lawsuit pending in Washington, DC, challenging a separate Pentagon supply-chain risk designation that could potentially prevent the company from securing civilian government contracts.
The Pentagon had not immediately responded to a request for comment at the time of the report.
The court battle is expected to remain significant as the US government and major technology companies continue to negotiate the limits of artificial intelligence in military and national security applications.
