Judge rules Pentagon's actions against AI firm Anthropic were 'illegal and baseless'

A federal judge has sided with artificial intelligence company Anthropic in its dispute with the Pentagon, declaring the government's designation of the company as a supply chain risk earlier this year to be "illegal and baseless." U.S. District Judge Rita Lin issued a written order stating that the Pentagon's actions were unlawful.

The dispute ignited in February when President Donald Trump and Defense Secretary Pete Hegseth accused Anthropic of endangering national security and labeled it a supply chain risk. This designation followed Anthropic CEO Dario Amodei's refusal to grant unrestricted military use of the company's AI products, citing concerns about potential misuse for mass surveillance or autonomous drones.

“

We remain focused on working productively with the government to harness AI for our national security so all Americans benefit from this technology.

Judge Lin's ruling indicated that the government's decision was driven by a desire to make an example of Anthropic for its public criticism of the Defense Department's views on AI, rather than any concrete evidence that Anthropic would sabotage its models. The judge asserted that neither the Constitution nor the relevant federal statute permitted the government to impose broad penalties primarily based on Anthropic's critique of the administration's policies.

Anthropic had sued the Pentagon in March, characterizing the supply chain risk designation as an "unlawful campaign of retaliation" for its stance on AI usage in warfare and surveillance. The company welcomed the judge's ruling, expressing its commitment to working productively with the government to advance AI for national security. The White House had not immediately responded to a request for comment.

“

were based on a desire to make a public example out of Anthropic for its 'arrogance' in criticizing the government, not based on any articulable basis to believe that Anthropic would actually sabotage its model.