Federal judge rules pentagon supply-chain risk label on anthropic is illegal

A federal judge in California has ruled that the Trump administration’s designation of Anthropic as a supply-chain risk was illegal. In a decision issued on Thursday evening, U.S. District Judge Rita Lin found that Defense Secretary Pete Hegseth’s labeling of the artificial intelligence developer constituted unlawful retaliation in violation of the First Amendment.

Constitutional Violations And Due Process

Judge Lin stated in her ruling that the government's decision was arbitrary and capricious, noting that Anthropic was also denied due process under the Fifth Amendment. The underlying dispute emerged earlier this year when administration officials labeled the company a supply-chain risk and instructed federal agencies to cease working with the maker of the Claude models.

The friction began when Anthropic established hard safety guardrails intended to prevent the military from using its models for fully autonomous weapons and mass surveillance of American citizens. While the Pentagon maintained that its intended uses were lawful, government officials argued that the company was attempting to exert control over purchased military technology.

Contradictory Actions By The Government

In her written opinion, Judge Lin pointed out a clear disconnect between the supply-chain risk label and other federal actions. She noted that the administration had previously proposed applying the Defense Production Act to the company, a move that would imply the firm was essential to national security rather than a threat to it.

Furthermore, the Department of Defense continued pursuing contracts with the enterprise and collaborated with its newer model, Mythos, for cybersecurity initiatives. Lin emphasized that the evidence demonstrated the company lacked any backdoor access to technology once handed over to the department, rendering the broader measures baseless.

Ongoing Legal Proceedings

Anthropic originally filed two complaints against the Department of Defense in March across courts in California and Washington, D.C. While the California case has concluded with this recent ruling, the separate lawsuit in Washington remains ongoing. Representatives for Anthropic welcomed the court's decision, emphasizing a continued commitment to working productively with government entities to support national security.