Judge rules that the Pentagon's Anthropic ban was 'illegal and baseless'

A federal judge has ruled that the Pentagon’s designation of Anthropic as a supply chain risk was illegal, handing the AI company a significant legal victory. US District Judge Rita Lin found that the Department of Defense’s restrictions on Anthropic and its Claude model were baseless, and she barred certain federal agencies from enforcing President Trump’s order to stop using the company’s tools. The ruling centers on a dispute that began in late February, when the Pentagon and Secretary Pete Hegseth pressed Anthropic to remove safety safeguards from its AI systems.

Judge Lin’s 59-page decision rejected the government’s national security rationale, stating that such an invocation is not a blank check to punish critics of the administration. She wrote that neither the Constitution nor the federal statute cited by defendants permits sweeping penalties based primarily on Anthropic’s critique of the administration’s views. Anthropic’s CEO, Dario Amodei, had previously refused to allow the company’s model to be used for mass surveillance or autonomous weapons development, a stance that appears to have triggered the conflict.

The feud escalated when Trump ordered all federal agencies to stop using Claude and other Anthropic services, announcing a six-month phase-out period. Subsequent negotiations collapsed, and Anthropic became the first US company to be designated as a supply chain risk. Anthropic then sued the White House in two federal courts to reverse the ban, covering two separate designations. Judge Lin’s ruling resolves one of those counts, while the second designation remains in effect pending another decision.

An Anthropic spokesperson welcomed the ruling, calling the supply chain designation unlawful. The company said it remains focused on working productively with the government to harness AI for national security, so all Americans can benefit from the technology. Even if Anthropic wins both legal cases, the Pentagon would not be required to resume its work with the company.

The legal setback has not slowed Anthropic’s business momentum. Earlier this month, the company reported record revenue of $11.5 billion for a quarter, a figure 14 times higher than what it earned in the same period last year. The company is also reportedly moving toward a near-record IPO later this year. Engadget, which originally reported the court ruling, contacted Anthropic for additional comment.

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