A US judge has blocked the Pentagon's blacklisting of Anthropic, the artificial intelligence company behind the Claude AI models, ruling that the Defense Department overstepped its authority. The decision marks a significant turn in the dispute between Anthropic and the military over the use of AI on the battlefield.
In a 59-page order, US District Judge Rita Lin found the Pentagon's designation of Anthropic as a national security supply-chain risk to be "illegal and baseless." This designation, applied by Defense Secretary Pete Hegseth, barred Anthropic from certain military contracts. Anthropic had alleged in its lawsuit that Hegseth exceeded his authority by applying this label to the company.
The Pentagon's action followed Anthropic's refusal to allow the military to use its Claude AI models for US surveillance or autonomous weapons. Anthropic executives stated that this blacklisting could cost the company billions of dollars in lost business and reputational harm.
Anthropic argued that AI models are not yet reliable enough for safe use in autonomous weapons and that its opposition to domestic surveillance stems from a commitment to rights. Conversely, the Pentagon contended that private companies should not have the power to restrict military actions. The government's legal filing stated that Anthropic's refusal to lift restrictions could create uncertainty within the Pentagon and risk disabling military systems during operations. The Justice Department also maintained that the designation was a result of Anthropic's refusal to accept contractual terms, rather than its views on AI safety.
Judge Lin wrote in her ruling, "The empty invocation of national security is not a blank check to punish and retaliate against government critics." The ruling also indicated that the government violated Anthropic's First Amendment right to free speech and its Fifth Amendment right to due process, as the company was not given an opportunity to dispute the designation.
This designation was reportedly the first time a US company had been publicly labeled a supply-chain risk under a statute designed to protect military systems from foreign sabotage. Anthropic welcomed the ruling, stating it remains "focused on working productively with the government to harness AI for our national security so all Americans benefit from this technology."
Anthropic has a separate lawsuit pending in Washington, D.C., concerning another Pentagon supply-chain risk designation that could affect its eligibility for civilian government contracts.