Judge rules Trump administration illegally retaliated against AI startup Anthropic

A US judge has ruled that the Trump administration's Department of Defense acted unlawfully when it designated artificial intelligence startup Anthropic as a supply chain risk. US District Judge Rita Lin described the move as "illegal and baseless," asserting that citing national security does not provide a "blank check to punish and retaliate against government critics."

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is not a blank check to punish and retaliate against government critics

Anthropic had argued in its lawsuit that Defense Secretary Pete Hegeth exceeded his authority with the designation. This action came after Anthropic refused to permit the military to employ its AI models for purposes including surveillance or autonomous weapons. The AI company stated that its models were not reliable enough for safe use in military weapon systems and opposed their use for domestic surveillance due to rights violations.

The Pentagon had previously argued that private companies should not be able to restrict military actions. The White House had characterized Anthropic as a "radical left, woke company" attempting to control military activity, asserting the military's obligation to the US Constitution, not to any AI company's terms of service. Anthropic's lawsuit contended that the government's actions negatively impacted its business and violated its First Amendment right to freedom of speech.

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working productively with the government to harness AI for our national security so all Americans benefit from this technology

Judge Lin had previously indicated during an earlier stage of the lawsuit that the government appeared to be attempting to "cripple" the company and "chill public debate" over the military's use of AI. She described the situation as "classic First Amendment retaliation." Anthropic has welcomed the ruling, while the Pentagon and White House have been contacted for comment. An Anthropic spokesperson emphasized the company's focus on "working productively with the government to harness AI for our national security so all Americans benefit from this technology."

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This appears to be classic First Amendment retaliation