US judge blocks Pentagon's blacklisting of AI firm Anthropic

A US federal judge has blocked the Pentagon's blacklisting of artificial intelligence company Anthropic, ruling that the government acted illegally by punishing the firm for its public safety criticisms.

In a scathing 59-page decision issued on Thursday, District Judge Rita Lin overturned Defense Secretary Pete Hegseth's designation of Anthropic as a national security "supply-chain risk." The court order permanently bars federal agencies from enforcing the sanctions, which had blocked the creator of the Claude AI models from military contracts and threatened billions of dollars in lost business.

"The empty invocation of national security is not a blank check to punish and retaliate against government critics," Judge Lin wrote.

The high-stakes legal battle erupted after Anthropic refused to allow its technology to be used for domestic surveillance or autonomous weapons, arguing that current AI models remain too unreliable for battlefield deployment.

Following the company's stance, the administration labelled the firm a supply-chain risk - marking the first time an American company was targeted under an obscure procurement statute traditionally reserved for foreign sabotage threats.

Judge Lin concluded that the Pentagon targeted Anthropic in retaliation for its protected free speech regarding AI safety, violating both First Amendment rights and due process. While Justice Department lawyers argued that the company's restrictions created operational uncertainties for the military, the court dismissed the defence as baseless.

Anthropic welcomed the ruling, emphasising its desire to work productively with the government on national security. The Pentagon has not yet issued an immediate comment, though an appeal is widely expected. Legal analysts note that the outcome delivers a major victory for tech firms navigating government contracts and highlights growing friction between private AI developers and military oversight.