Judge Blocks Pentagon's Designation of Anthropic as Supply-Chain Risk

A federal judge on Thursday struck down the Pentagon's blacklisting of Anthropic as a supply-chain risk, ruling that the government's actions violated Anthropic's constitutional rights. U.S. District Judge Rita Lin ruled that the Pentagon's designation of Anthropic was unlawful, stating that the government's invocation of national security was not a valid reason to punish the company. The Pentagon had designated Anthropic as a supply-chain risk earlier this year, after the company refused to allow the military to use its AI models for certain purposes, including mass surveillance of Americans and fully autonomous weapons.

The dispute between Anthropic and the Pentagon began when the Defense Department sought to use Anthropic's AI model, Claude, for all lawful purposes, including sensitive military and intelligence applications. Anthropic insisted that certain areas remain off-limits, leading to a standoff between the two parties. The Pentagon ultimately designated Anthropic as a national security and supply-chain risk, prompting the company to sue. In her 59-page decision, Judge Lin noted that the Pentagon continued to pursue work with Anthropic even after the designation, which she said was inconsistent with a genuine fear that Anthropic posed a threat to national security.

Anthropic has welcomed the court's ruling, stating that it remains focused on working with the government to harness AI for national security. The government is expected to appeal the ruling, and Anthropic is also fighting a separate Pentagon designation under a different statute in the D.C. Circuit.