Court Finds Pentagon Blacklisted Anthropic For Criticizing The Pentagon, Not For Endangering It

SAN FRANCISCO—A federal judge ruled that the Pentagon illegally branded Anthropic a national security supply-chain risk because the artificial intelligence company criticized the government’s plans for unrestricted military use, securing the defense supply chain against public disagreement.

U.S. District Judge Rita Lin wrote that the designation was based on a desire to make a public example of Anthropic for its “arrogance,” not on any articulated reason to believe the company would sabotage its model. The 59-page ruling said neither the Constitution nor the statute invoked by the government permits sweeping penalties based primarily on a contractor’s criticism of administration policy.

The dispute began when Anthropic refused to remove restrictions involving mass surveillance of Americans and fully autonomous weapons. President Donald Trump then directed federal agencies to stop using the company, while Defense Secretary Pete Hegseth labeled it a supply-chain risk under an authority intended to protect government systems from infiltration or disruption.

Justice Department lawyers argued that artificial intelligence models are so large and opaque that the Pentagon cannot evaluate them like physical hardware. The government is expected to appeal, and a separate case involving another version of the designation remains pending in Washington. Anthropic said it still wants to work with the government on national security.

The ruling leaves the Pentagon free to choose another vendor. It only removes the added protection of declaring a company dangerous to the country when the documented danger was that it had described what it would not build for the country.