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What is the story about?
A US federal judge has ruled that the Pentagon acted illegally when it designated AI company Anthropic as a supply chain risk and imposed restrictions on its technology.
US District Judge Rita Lin said the government could not use national security concerns as a basis to punish the company for criticising its position on the use of AI.
Judge Rita Lin found that the government had not shown a clear basis to believe Anthropic posed a security threat or would deliberately misuse its AI models. "The empty invocation of national security is not a blank check to punish and retaliate against government critics," the judge said in a 59-page decision, AFP reported.
Judge Lin added that the sanctions “were based on a desire to make a public example out of Anthropic for its ‘arrogance’ in criticising the government, not based on any articulable basis to believe that Anthropic would actually sabotage its model.”
Her ruling made permanent an earlier temporary order that had blocked the Pentagon from enforcing the restrictions. “We welcome the court's ruling that this supply chain risk designation was unlawful,” an Anthropic spokesperson said.
What is the dispute between Anthropic and the Pentagon?
The dispute began after Anthropic, the company behind the Claude AI models, refused to allow the US military to use its technology for fully autonomous lethal weapons and mass surveillance of Americans.
Anthropic CEO Dario Amodei maintained the company’s position despite pressure from the Trump administration. President Donald Trump subsequently criticised Anthropic publicly, calling it a “radical left, woke company” and “out-of-control.”
Why did the Pentagon label Anthropic a supply chain risk?
In February, the Trump administration directed federal agencies to stop using Anthropic’s technology. Defense Secretary Pete Hegseth later designated the company a “supply chain risk”, a classification that had previously been used for foreign companies.
The designation resulted in Anthropic’s military contracts being cancelled and prevented other Pentagon contractors from using its technology.
What was Anthropic’s argument?
During an earlier hearing, Anthropic lawyer Michael Mongan said the government’s actions “profoundly harm Anthropic.” He added that the actions could “threaten more broadly to chill speech and debate on a very important issue.”
During the July 30 hearing, Lin also said the government’s position was “really troubling” and appeared to her to be “at odds” with the First Amendment.
What happens next?
The government can appeal the ruling.
Anthropic’s legal victory does not resolve every issue between the company and the Pentagon.
A separate case involving another Pentagon procurement rule is still pending in a federal appeals court in Washington, DC. That case concerns another attempt to classify Anthropic as a supply chain risk.
US District Judge Rita Lin said the government could not use national security concerns as a basis to punish the company for criticising its position on the use of AI.
Judge Rita Lin found that the government had not shown a clear basis to believe Anthropic posed a security threat or would deliberately misuse its AI models. "The empty invocation of national security is not a blank check to punish and retaliate against government critics," the judge said in a 59-page decision, AFP reported.
Judge Lin added that the sanctions “were based on a desire to make a public example out of Anthropic for its ‘arrogance’ in criticising the government, not based on any articulable basis to believe that Anthropic would actually sabotage its model.”
Her ruling made permanent an earlier temporary order that had blocked the Pentagon from enforcing the restrictions. “We welcome the court's ruling that this supply chain risk designation was unlawful,” an Anthropic spokesperson said.
What is the dispute between Anthropic and the Pentagon?
The dispute began after Anthropic, the company behind the Claude AI models, refused to allow the US military to use its technology for fully autonomous lethal weapons and mass surveillance of Americans.
Anthropic CEO Dario Amodei maintained the company’s position despite pressure from the Trump administration. President Donald Trump subsequently criticised Anthropic publicly, calling it a “radical left, woke company” and “out-of-control.”
Why did the Pentagon label Anthropic a supply chain risk?
In February, the Trump administration directed federal agencies to stop using Anthropic’s technology. Defense Secretary Pete Hegseth later designated the company a “supply chain risk”, a classification that had previously been used for foreign companies.
The designation resulted in Anthropic’s military contracts being cancelled and prevented other Pentagon contractors from using its technology.
What was Anthropic’s argument?
During an earlier hearing, Anthropic lawyer Michael Mongan said the government’s actions “profoundly harm Anthropic.” He added that the actions could “threaten more broadly to chill speech and debate on a very important issue.”
During the July 30 hearing, Lin also said the government’s position was “really troubling” and appeared to her to be “at odds” with the First Amendment.
What happens next?
The government can appeal the ruling.
Anthropic’s legal victory does not resolve every issue between the company and the Pentagon.
A separate case involving another Pentagon procurement rule is still pending in a federal appeals court in Washington, DC. That case concerns another attempt to classify Anthropic as a supply chain risk.
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