US judge rules Pentagon blacklisting of AI firm Anthropic unlawful

A U.S. judge has declared the Pentagon's decision to blacklist the artificial intelligence firm Anthropic unlawful. U.S. District Judge Rita F. Lin issued the ruling on Thursday, finding that the Pentagon's actions violated Anthropic's constitutional rights.

The judge's ruling specified that the blacklisting constituted "unlawful retaliation in violation of the First Amendment." Furthermore, the court found that Anthropic was denied the "pre-deprivation process required under the Fifth Amendment," indicating a failure to provide adequate due process before the action was taken.

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The undisputed record shows that the challenged actions constituted unlawful retaliation in violation of the First Amendment, and that Anthropic was denied the pre-deprivation process required under the Fifth Amendment.

Beyond the constitutional violations, the ruling also addressed the statutory basis for the Pentagon's decision. Judge Lin determined that the decision by Secretary Hegseth to designate Anthropic as a supply chain risk was not supported by the relevant laws. The court described the decision as "arbitrary and capricious," suggesting it lacked a rational basis and was made without proper consideration.

The case highlights potential legal challenges to government actions against companies, particularly in sensitive sectors like artificial intelligence and national security. The ruling suggests that government agencies must adhere strictly to constitutional and statutory requirements when taking actions that could impact businesses.

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The record further shows no material dispute that Secretary Hegseth’s decision to designate Anthropic a supply chain risk violated the governing statutory scheme...and was arbitrary and capricious.