A federal judge in California ruled on Thursday that the Pentagon's blacklisting of Anthropic was unconstitutional retaliation under the First Amendment, according to reporting by TechCrunch.
Judge Rita F. Lin of the U.S. District Court for the Northern District of California determined that Defense Secretary Pete Hegseth's decision to designate Anthropic as a supply chain risk was arbitrary and capricious. Lin wrote that invoking national security does not grant the government authority to punish critics, adding that the broad measures imposed on the AI company were illegal and baseless.
Contract negotiations and red lines
The dispute began during the winter when Hegseth sought to renegotiate military AI contracts to permit the Pentagon to deploy systems for any lawful use. While most AI vendors accepted the expanded terms, Anthropic refused to permit two specific applications: mass surveillance of Americans and lethal autonomous weapons that operate without human oversight.
Department of Defense officials subjected Anthropic to mounting pressure and public insults before issuing a final ultimatum. Anthropic Chief Executive Officer Dario Amodei issued a statement maintaining the company's position, writing that while the firm had never objected to specific military operations, AI could undermine democratic values in a narrow set of cases.
Supply chain designation and replacement deals
The Pentagon subsequently designated Anthropic as a supply chain risk, a status typically reserved for national security threats. Defense officials then moved to replace the company by signing contracts with seven other AI providers, including Google, Microsoft, OpenAI, and SpaceX.
Anthropic challenged the designation in a March lawsuit, leading Judge Lin to grant a temporary block after records showed the Department of War targeted the company for its communications through the press.
Anthropic spokesperson Danielle Ghiglieri stated on Thursday that the company welcomed the court ruling and remains focused on working productively with the government on national security initiatives.
