Court invalidates Pentagon's blacklisting of AI firm Anthropic

A federal judge in California ruled that the Pentagon's designation of Anthropic as a supply chain risk was unlawful, citing violations of the First Amendment and due process. The court found the Trump administration retaliated against the AI company for its public advocacy on safety restrictions. The ruling stems from a lawsuit Anthropic filed after contract negotiations broke down over limits on autonomous weapons and mass surveillance.

The ruling specifically addressed the Pentagon's supply chain risk designation, a label that barred Anthropic from federal contracting. Judge Rita Lin's 59-page opinion determined the government's actions were based on the company's public criticism rather than legitimate security concerns, noting that CEO Dario Amodei had a consistent history of speaking publicly about AI safety matters.

Anthropic's lawsuit followed failed contract negotiations in which the company sought to prohibit use of its Claude technology in fully autonomous weapons or for mass surveillance of American citizens, while the Pentagon demanded unrestricted use. A separate legal challenge remains pending in the D.C. Circuit Court of Appeals, where a three-judge panel heard arguments in May but has not yet issued a decision.