A US judge has ruled that the Department of Defense acted unlawfully when it designated artificial intelligence company Anthropic as a supply-chain risk, describing the move as “illegal and baseless.”
The ruling followed a lawsuit filed by Anthropic, which accused Defence Secretary Pete Hegseth of exceeding his authority after the company refused to allow the US military to use its AI models for activities including surveillance and autonomous weapons.
US District Judge Rita Lin said national security could not be used to punish companies for opposing government policy. “National security is not a blank check to punish and retaliate against government critics.”
Judge Lin ruled that the Pentagon acted unlawfully when it ordered companies that do business with the US military to boycott Anthropic.
The Pentagon had designated Anthropic as a supply-chain risk in February, marking the first time an American company had publicly received the designation, which is typically applied to companies based in countries considered threats to the United States.
Anthropic had argued that the designation was unprecedented and unlawful and that the government’s actions had damaged its business and violated its freedom of speech.
The company, which develops the Claude AI models, had refused to permit their use in weapons systems, arguing that the technology was not sufficiently reliable for such applications. It also opposed the use of its models for domestic surveillance, citing concerns over individual rights.
The Pentagon, however, argued that private companies should not be allowed to place restrictions on military operations and said Anthropic’s refusal to accept new contract terms raised concerns about the company’s control over its technology.
The White House had also criticised Anthropic, describing it as a “radical left, woke company” seeking to control military activity.
It argued that the US military was bound by the Constitution rather than the terms of an AI company’s service.
Anthropic welcomed Judge Lin’s ruling, saying it remained committed to working with the US government on national security applications of artificial intelligence.
“Working productively with the government to harness AI for our national security so all Americans benefit from this technology,” an Anthropic spokesperson said.
The ruling follows an earlier stage of the case in which Judge Lin said the government appeared to be attempting to “cripple” Anthropic and “chill public debate” over the military use of AI.
“This appears to be classic First Amendment retaliation.”
Erizia Rubyjeana
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