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In a legal victory for artificial intelligence firm Anthropic, a federal judge has ruled against the Pentagon over its decision earlier this year to designate the company a supply chain risk. In a written order issued Thursday night, U.S. District Judge Rita Lin determined that the Department of Defense acted unlawfully by penalizing the tech firm for voicing criticism of defense policy on AI integration. The government is expected to challenge the decision. The conflict escalated in February after President Donald Trump and Defense Secretary Pete Hegseth cited national security concerns to brand Anthropic a supply chain risk. Anthropic CEO Dario Amodei refused to acquiesce amid concerns the company's technology could be applied to mass surveillance or autonomous military drones. In her ruling, Lin stated that federal actions "were based on a desire to make a public example out of Anthropic for its 'arrogance' in criticizing the government, not based on any articulable basis to believe that Anthropic would actually sabotage its model." An Anthropic spokesperson welcomed the outcome in a statement: "We remain focused on working productively with the government to harness AI for our national security so all Americans benefit from this technology." The White House did not immediately issue a response to requests for comment. Writing in the 59-page decision, Lin, an appointee of former President Joe Biden, asserted that constitutional provisions and federal statutes do not allow authorities to "impose sweeping penalties based principally on Anthropic's critique of the Administration's views." Anthropic launched its lawsuit against the Pentagon in March in response to the supply chain classification, challenging what it described as an "unlawful campaign of retaliation" caused by its refusal to grant unrestricted military access to its tools. The court fight highlighted a rare public dispute regarding the role of AI in defense and surveillance operations. Notably, primary industry competitor OpenAI, creator of ChatGPT, reached its own agreement to collaborate with defense officials hours after the government penalized Anthropic. Both Anthropic and OpenAI are currently preparing for anticipated initial public offerings. Anthropic is also pursuing a secondary, narrower lawsuit currently pending in the federal appeals court in Washington, D.C., targeting a separate regulatory mechanism invoked by the Pentagon to designate the firm a risk. Earlier in the case, Lin granted a preliminary injunction prohibiting the Pentagon from applying the supply chain designation and halting the enforcement of a social media directive from Trump instructing federal agencies to cease using Anthropic products and its Claude chatbot. During a hearing on July 30, Lin described the government's stance as "really troubling" and remarked that it appeared "at odds to me with the First Amendment." She added that the legal standing had "gotten worse for the government" over time. Department of Justice attorneys argued at that hearing that the complex architecture of AI models is "so staggeringly enormous and opaque" that defense officials cannot evaluate it through standard methods used for physical hardware. Anthropic attorney Michael Mongan asserted during the proceeding that official actions "profoundly harm Anthropic" and "threaten more broadly to chill speech and debate on a very important issue."
In a legal victory for artificial intelligence firm Anthropic, a federal judge has ruled against the Pentagon over its decision earlier this year to designate the company a supply chain risk. In a written order issued Thursday night, U.S. District Judge Rita Lin determined that the Department of Defense acted unlawfully by penalizing the tech firm for voicing criticism of defense policy on AI integration. The government is expected to challenge the decision. The conflict escalated in February after President Donald Trump and Defense Secretary Pete Hegseth cited national security concerns to brand Anthropic a supply chain risk. Anthropic CEO Dario Amodei refused to acquiesce amid concerns the company's technology could be applied to mass surveillance or autonomous military drones. In her ruling, Lin stated that federal actions "were based on a desire to make a public example out of Anthropic for its 'arrogance' in criticizing the government, not based on any articulable basis to believe that Anthropic would actually sabotage its model." An Anthropic spokesperson welcomed the outcome in a statement: "We remain focused on working productively with the government to harness AI for our national security so all Americans benefit from this technology." The White House did not immediately issue a response to requests for comment. Writing in the 59-page decision, Lin, an appointee of former President Joe Biden, asserted that constitutional provisions and federal statutes do not allow authorities to "impose sweeping penalties based principally on Anthropic's critique of the Administration's views." Anthropic launched its lawsuit against the Pentagon in March in response to the supply chain classification, challenging what it described as an "unlawful campaign of retaliation" caused by its refusal to grant unrestricted military access to its tools. The court fight highlighted a rare public dispute regarding the role of AI in defense and surveillance operations. Notably, primary industry competitor OpenAI, creator of ChatGPT, reached its own agreement to collaborate with defense officials hours after the government penalized Anthropic. Both Anthropic and OpenAI are currently preparing for anticipated initial public offerings. Anthropic is also pursuing a secondary, narrower lawsuit currently pending in the federal appeals court in Washington, D.C., targeting a separate regulatory mechanism invoked by the Pentagon to designate the firm a risk. Earlier in the case, Lin granted a preliminary injunction prohibiting the Pentagon from applying the supply chain designation and halting the enforcement of a social media directive from Trump instructing federal agencies to cease using Anthropic products and its Claude chatbot. During a hearing on July 30, Lin described the government's stance as "really troubling" and remarked that it appeared "at odds to me with the First Amendment." She added that the legal standing had "gotten worse for the government" over time. Department of Justice attorneys argued at that hearing that the complex architecture of AI models is "so staggeringly enormous and opaque" that defense officials cannot evaluate it through standard methods used for physical hardware. Anthropic attorney Michael Mongan asserted during the proceeding that official actions "profoundly harm Anthropic" and "threaten more broadly to chill speech and debate on a very important issue."
* Judge Rita Lin granted Anthropic summary judgment on its First Amendment, due process and Administrative Procedure Act claims in a 59-page order. * The government conceded Anthropic has no backdoor access to deployed models and is no riskier than any other AI system. * Anthropic lost on one count, its claim that Trump's directive to federal agencies exceeded presidential power. A federal judge has ruled that the Trump administration illegally punished Anthropic for publicly refusing to let the military use its Claude LLM for tasks including mass surveillance of Americans and lethal autonomous warfare. The dispute began when the Pentagon told Anthropic to strip all usage restrictions and accept a clause permitting "all lawful uses." Anthropic dropped most of them and held two red lines. On February 27, Trump ordered every federal agency to stop using the company's technology, calling it a "RADICAL LEFT, WOKE COMPANY" on Truth Social. Hegseth followed, accusing Anthropic in a tweet of "a master class in arrogance and betrayal" and barring any military contractor from doing business with it. What the record showed The government has since abandoned its central claim. Its risk assessment rested on Anthropic having backdoor access to deployed models, and it now concedes Anthropic has no such access and that Claude is no riskier than any other "black box" system. That left one factor: trust, forfeited by what a Pentagon memo called Anthropic's "increasingly hostile manner through the press." Lin found the timeline gave that away. Days before the blacklisting, Hegseth had floated invoking the Defense Production Act, which would have made Anthropic essential to national security. The day after the designation, an under secretary emailed the company to say a contract was "very close." The government is still discussing collaboration on Mythos, Anthropic's newest model, across sensitive contexts, Lin added. "The empty invocation of national security is not a blank check to punish and retaliate against government critics," Lin wrote, finding the actions retaliatory under the First Amendment, imposed without the pre-deprivation process the Fifth Amendment requires, outside the supply chain statute, and arbitrary and capricious. Anthropic did not win everything. Lin rejected its argument that Trump's directive exceeded presidential authority, and entered judgment for agencies that took no action. She vacated the designation and Hegseth's boycott order, granted a permanent injunction, and denied the government's request for a seven-day administrative stay, noting it had operated under a preliminary injunction since March without identifying any harm.

Hyderabad: Anthropic has opened a research preview of a new system called the Model Hardware Standard (MHS), designed to let Artificial Intelligence (AI) agents safely operate physical machines in laboratories and factories. The preview is being made available to a first group of scientific research labs and manufacturers, marking an early step towards making the technology more widely available. MHS allows AI agents to control several lab and manufacturing tools at the same time, including microscopes, liquid handling machines and robotic arms. It can support tasks ranging from everyday drug discovery experiments to calibrating lasers on quantum computers. The system was originally developed through a partnership between Anthropic and HHMI Janelia Research Campus. What does MHS solve? Traditionally, setting up a lab or factory equipment to work together normally takes weeks or even months, since most devices cannot communicate with one another without specially built connections. However, MHS is designed to cut this setup time down to hours or even minutes. By adding AI into the process, it allows researchers and engineers to run experiments and workflows automatically, around the clock. The AI agent can work through each step of an experiment, adjust settings as needed, and in some cases fix hardware problems without requiring a person to step in.

A California federal judge said the Trump administration's designation of Anthropic was unlawful retaliation and violated constitutional protections.Thank you for reading this post, don't forget to subscribe! A federal judge in California has thrown out the Trump administration's designation of Anthropic as a supply chain risk, handing the company its first court win in a fight that has put the Pentagon's AI procurement practices under a bright light. U.S. District Judge Rita Lin ruled Thursday evening that Defense Secretary Pete Hegseth's move was "unlawful retaliation" and violated the First Amendment. She also said the action was "arbitrary and capricious" and denied Anthropic due process under the Fifth Amendment. The label, the backlash, and the legal break The dispute started after Anthropic drew hard lines around safety guardrails that would have allowed the Pentagon to use its models for fully autonomous weapons and mass surveillance of American citizens. The Pentagon said it would use Anthropic models only for lawful purposes and argued the company was trying to control how the military used technology it had already bought. Hegseth and President Donald Trump later labeled Anthropic a supply-chain risk and ordered federal agencies, including those outside the Defense Department, to stop working with the Claude maker. Lin said the government's "words and deeds" showed the action was driven by a desire to make Anthropic "a public example" for its criticism of the administration. She also pointed to the disconnect between the risk label and other government actions, including Hegseth's proposal to apply the Defense Production Act to Anthropic, which would have treated the company as essential to national security rather than a threat to it. Why the court said the designation did not hold up The judge also cited the Defense Department's continued pursuit of a contract with Anthropic and the government's collaboration with the company's new model, Mythos, for cybersecurity. In Lin's view, those facts cut against the idea that Anthropic posed a supply-chain threat. She wrote that Anthropic "undisputedly lacks" any backdoor access to its technology once it is handed over to the Defense Department. That mattered. The ruling said the broad restrictions imposed on the company were not supported by the record. Also Read: Entercom Station News Radio 1120 Kmox in St. Louis Returns as Chiefs Radio Network Affiliate "Though the Department of War is undisputedly free to select the AI vendor of its choice, the evidence demonstrates that the broad measures imposed on Anthropic were illegal and baseless," Lin wrote. "The empty invocation of national security is not a blank check to punish and retaliate against government critics," she added. What Anthropic gets from the ruling Anthropic welcomed the decision. "We welcome the court's ruling that this supply chain risk designation was unlawful," a spokesperson said in a statement shared with TechCrunch. "We remain focused on working productively with the government to harness AI for our national security so all Americans benefit from this technology." The company filed two complaints against the Defense Department in March, one in California and one in Washington, D.C. The D.C. case is still . The ruling does not end the broader fight over how federal agencies buy and use frontier AI systems. It does, however, strip away one of the government's most aggressive moves against a major model provider and puts the administration on the defensive over how far national security can be stretched when a vendor pushes back on military use cases.

Dario Amodei, co-founder and chief executive officer of Anthropic, during an interview on "The Circuit with Emily Chang" at Anthropic's headquarters in San Francisco, California, US, on Thursday, April 30, 2026. Jason Henry | Bloomberg | Getty Images A federal judge in California on Thursday ruled that the Pentagon's effort to blacklist Anthropic earlier this year violated the First Amendment and deprived the artificial intelligence company of its constitutionally protected liberties. This is breaking news. Please refresh for updates. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

SAN FRANCISCO -- A federal judge ruled late Thursday that the Trump administration violated Anthropic's First Amendment rights and barred it from blacklisting Anthropic as a supply-chain risk, granting relief to the artificial-intelligence lab that has been embroiled in a monthslong fight with the ...
The Trump administration must lift its ban on Anthropic PBC's artificial intelligence technology for federal agencies, a US judge ruled. US District Judge Rita F. Lin in San Francisco sided late Thursday with the Claude chatbot maker in its challenge to the Department of Defense, finding that the ...

WASHINGTON, Aug 27 (Reuters) - A U.S. judge ruled on Thursday that the Pentagon's blacklisting of Anthropic was unlawful. "The undisputed record shows that the challenged actions constituted unlawful retaliation in violation of the First Amendment, and that Anthropic was denied the pre-deprivation process required under the Fifth Amendment," U.S. District Judge Rita F. Lin wrote in a ruling. "The record further shows no material dispute that Secretary Hegseth's decision to designate Anthropic a supply chain risk violated the governing statutory scheme...and was arbitrary and capricious." (Reporting by Christian Martinez and Jasper Ward) Copyright Reuters or USA Today via Reuters Connect This story was originally published August 27, 2026 at 7:22 PM.
WASHINGTON, Aug 27 (Reuters) - A U.S. judge ruled on Thursday that the Pentagon's blacklisting of Anthropic was unlawful. "The undisputed record shows that the challenged actions constituted unlawful retaliation in violation of the First Amendment, and that Anthropic was denied the pre-deprivation process required under the Fifth Amendment," U.S. District Judge Rita F. Lin wrote in a ruling. "The record further shows no material dispute that Secretary Hegseth's decision to designate Anthropic a supply chain risk violated the governing statutory scheme...and was arbitrary and capricious." (Reporting by Christian Martinez and Jasper Ward) Copyright Reuters or USA Today via Reuters Connect This story was originally published August 27, 2026 at 8:22 PM.
WASHINGTON, Aug 27 (Reuters) - A U.S. judge ruled on Thursday that the Pentagon's blacklisting of Anthropic was unlawful. "The undisputed record shows that the challenged actions constituted unlawful retaliation in violation of the First Amendment, and that Anthropic was denied the pre-deprivation process required under the Fifth Amendment," U.S. District Judge Rita F. Lin wrote in a ruling. "The record further shows no material dispute that Secretary Hegseth's decision to designate Anthropic a supply chain risk violated the governing statutory scheme...and was arbitrary and capricious." (Reporting by Christian Martinez and Jasper Ward) Copyright Reuters or USA Today via Reuters Connect This story was originally published August 27, 2026 at 9:22 PM.
WASHINGTON, Aug 27 (Reuters) - A U.S. judge ruled on Thursday that the Pentagon's blacklisting of Anthropic was unlawful. "The undisputed record shows that the challenged actions constituted unlawful retaliation in violation of the First Amendment, and that Anthropic was denied the pre-deprivation process required under the Fifth Amendment," U.S. District Judge Rita F. Lin wrote in a ruling. "The record further shows no material dispute that Secretary Hegseth's decision to designate Anthropic a supply chain risk violated the governing statutory scheme...and was arbitrary and capricious." (Reporting by Christian Martinez and Jasper Ward) Copyright Reuters or USA Today via Reuters Connect This story was originally published August 27, 2026 at 6:22 PM.
WASHINGTON, Aug 27 (Reuters) - A U.S. judge ruled on Thursday that the Pentagon's blacklisting of Anthropic was unlawful. "The undisputed record shows that the challenged actions constituted unlawful retaliation in violation of the First Amendment, and that Anthropic was denied the pre-deprivation process required under the Fifth Amendment," U.S. District Judge Rita F. Lin wrote in a ruling. "The record further shows no material dispute that Secretary Hegseth's decision to designate Anthropic a supply chain risk violated the governing statutory scheme...and was arbitrary and capricious." Reporting by Christian Martinez and Jasper Ward Our Standards: The Thomson Reuters Trust Principles., opens new tab

( August 28, 2026, 01:22 GMT | Official Statement) -- MLex Summary: A federal judge in California has ruled that the Department of War's action to remove Anthropic from the US supply chain for national security concerns was "illegal and baseless." "The undisputed record shows that the challenged actions constituted unlawful retaliation in violation of the First Amendment, and that Anthropic was denied the pre-deprivation process required under the Fifth Amendment," US District Judge Rita F. Lin ruled in San Francisco, granting Anthropic's motion for summary judgment against the government. "The government is certainly owed deference on weighty issues of national security," Lin added. "But Defendants' contemporaneous words and deeds confirm that the challenged actions were based on a desire to make a public example out of Anthropic for its 'arrogance' in criticizing the government, not based on any articulable basis to believe that Anthropic would actually sabotage its model."See attached order.... Prepare for tomorrow's regulatory change, today MLex identifies risk to business wherever it emerges, with specialist reporters across the globe providing exclusive news and deep-dive analysis on the proposals, probes, enforcement actions and rulings that matter to your organization and clients, now and in the longer term. Know what others in the room don't, with features including: * Daily newsletters for Antitrust, M&A, Trade, Data Privacy & Security, Technology, AI and more * Custom alerts on specific filters including geographies, industries, topics and companies to suit your practice needs * Predictive analysis from expert journalists across North America, the UK and Europe, Latin America and Asia-Pacific * Curated case files bringing together news, analysis and source documents in a single timeline Experience MLex today with a 14-day free trial.

by: Justin Sayers- Senior Staff Writer, Austin Business Journal AUSTIN (ABJ) -- Fresh off its huge data center lease in Milam County northeast of Austin, Silicon Valley-based Anthropic PBC is in talks to occupy a gargantuan data center development on the east side in Bastrop County. While no agreement has been finalized, the artificial intelligence company has been working with Washington, D.C.-based BlackChamber Partners LLC and Dallas-based Pacifico Energy LLC on what's been described as a 2,842-acre gas-fired electric generation facility to support a major data center development in the Cedar Creek area, several sources told ABJ. Read the full article on the Austin Business Journal.

Enterprises appear to be prioritizing cheaper AI tools instead. endif; ?> New payment data from Ramp suggests that Anthropic's most advanced AI model, Fable 5, has had a slow start among enterprise customers, the Financial Times reports. Two months after launch, Fable 5 accounts for about 11% of total enterprise spending on Anthropic models, breaking the previous trend of customers quickly moving to the most powerful model. According to analysts and investors, the development is mainly due to Fable 5's high price and the fact that cheaper models are good enough for most tasks.

The frontend optimization delivers smoother token streaming for long responses without changing Claude's underlying models or API Anthropic rolled out a frontend optimization to Claude's streaming response renderer on August 24, targeting a problem that anyone who's tried to get a long answer from an AI chatbot on an older machine knows well: the maddening stutter-and-freeze cycle that turns a conversation into a slideshow. The update applies to Claude's web and desktop applications. According to Anthropic, long answers now stream roughly 4x smoother, stalls on slower laptops drop by 9x, and worst-case freezes shrink by 4.5x. On hardware that supports it, like 120 Hz MacBooks, the renderer can sustain 120 fps during streaming output. What actually changed under the hood The core fix is elegant in its simplicity. Previously, each incoming token from Claude's model triggered a repaint of the full response container, or at least a substantial portion of it. The new approach restricts UI updates to only the elements that have actually changed, resulting in dramatically less computational overhead per token, which matters most on machines with limited GPU headroom or older processors. Critically, Anthropic made no changes to its models or API with this release. Generation speed, output quality, and the underlying inference pipeline remain untouched. This is purely a presentation-layer improvement. Why UI performance matters in the AI race The 120 fps sustained frame rate figure is particularly telling. Most web applications don't need to think about frame rates at all, but streaming text renderers are effectively animations. Each new token is a frame update. When you're generating hundreds of tokens for a long response, that's hundreds of sequential frame updates, and any hitch becomes visible as a stutter or freeze. Hitting 120 fps on compatible hardware means Anthropic's renderer can now match the refresh rate of Apple's ProMotion displays without dropping frames. The feedback loop, and its limits User reception on social media was largely positive, with many noting that the improvement was immediately noticeable during extended conversations. But some responses highlighted a tension that Anthropic and every other AI company faces: polishing the interface doesn't fix the model. Several users pointed out that smoother streaming doesn't help when Claude hallucinates a citation or confidently delivers incorrect information. The update also has implications for Anthropic's enterprise ambitions. Corporate users often run standardized hardware that skews older than what developers and early adopters use. A 9x reduction in stalls on slower laptops isn't just a nice stat for a blog post. It's the difference between an enterprise deployment that employees actually use and one they abandon for a competitor after a week of frustrating freezes.

Anthropic Intros Invisible Watermarks to Claude-Generated Text * By John K. Waters * 08/24/26 Anthropic announced it is incorporating invisible watermarks into text generated by its Claude AI models, offering an early look at how major AI companies may respond to new European rules requiring machine-readable identification of AI-generated content. The AI company detailed its approach as part of changes designed to comply with transparency requirements under the European Union's AI Act. The measures apply globally to supported Claude models, rather than only to users in Europe. For text, Anthropic is using a version of SynthID-Text, an open source watermarking approach developed by Google DeepMind. Instead of adding visible labels or hidden characters, the system subtly influences the model's choices as it generates text, creating a statistical pattern that can later be detected. The process takes advantage of the fact that large language models often have several plausible choices for the next token in a response. The watermarking system can influence those choices in ways that create a detectable signature while preserving the overall meaning of the text. Anthropic says the watermark has no practical impact on the quality or content of Claude's output and does not increase the cost of using the model. The company is taking a different approach for images. Claude-processed images will use the Coalition for Content Provenance and Authenticity (C2PA) standard to attach provenance information to supported image files. The changes come as AI developers face growing pressure to make synthetic content easier to identify. Article 50 of the EU AI Act requires providers of systems that generate synthetic audio, images, video, or text to ensure their outputs are marked in a machine-readable format and detectable as artificially generated or manipulated. Anthropic has linked its watermarking changes directly to those requirements. The rules could make watermarking a more common feature across generative AI services as other companies operating in Europe address the same requirements. But watermarking AI-generated text presents challenges that do not exist in the same way for images or video. Anthropic acknowledges that its watermark is not intended to provide definitive proof that a piece of text was written by Claude. The company has also warned that quoted Claude-generated text could carry the watermark into another document, while text without a detectable watermark should not automatically be considered human-written. The watermark may survive copying, pasting, and some editing, but more extensive changes to generated text can make detection more difficult. The approach has also prompted criticism from some Claude users who are concerned about how watermarked text could be interpreted when AI is used for tasks such as editing, translation, or formatting rather than generating an entire document. Anthropic has said the presence of a watermark indicates that text was processed by Claude, not necessarily that Claude was responsible for its authorship. For more information, go to the Anthropic blog.

Anthropic Adding Invisible Watermarks to Claude-Generated Text * By John K. Waters * 08/24/26 Anthropic announced it is adding invisible watermarks to text generated by its Claude AI models, offering an early look at how major AI companies may respond to new European rules requiring machine-readable identification of AI-generated content. The AI company detailed its approach as part of changes designed to comply with transparency requirements under the European Union's AI Act. The measures apply globally to supported Claude models, rather than only to users in Europe. For text, Anthropic is using a version of SynthID-Text, an open source watermarking approach developed by Google DeepMind. Instead of adding visible labels or hidden characters, the system subtly influences the model's choices as it generates text, creating a statistical pattern that can later be detected. The process takes advantage of the fact that large language models often have several plausible choices for the next token in a response. The watermarking system can influence those choices in ways that create a detectable signature while preserving the overall meaning of the text. Anthropic says the watermark has no practical impact on the quality or content of Claude's output and does not increase the cost of using the model. The company is taking a different approach for images. Claude-processed images will use the Coalition for Content Provenance and Authenticity (C2PA) standard to attach provenance information to supported image files. The changes come as AI developers face growing pressure to make synthetic content easier to identify. Article 50 of the EU AI Act requires providers of systems that generate synthetic audio, images, video, or text to ensure their outputs are marked in a machine-readable format and detectable as artificially generated or manipulated. Anthropic has linked its watermarking changes directly to those requirements. The rules could make watermarking a more common feature across generative AI services as other companies operating in Europe address the same requirements. But watermarking AI-generated text presents challenges that do not exist in the same way for images or video. Anthropic acknowledges that its watermark is not intended to provide definitive proof that a piece of text was written by Claude. The company has also warned that quoted Claude-generated text could carry the watermark into another document, while text without a detectable watermark should not automatically be considered human-written. The watermark may survive copying, pasting, and some editing, but more extensive changes to generated text can make detection more difficult. The approach has also prompted criticism from some Claude users who are concerned about how watermarked text could be interpreted when AI is used for tasks such as editing, translation, or formatting rather than generating an entire document. Anthropic has said the presence of a watermark indicates that text was processed by Claude, not necessarily that Claude was responsible for its authorship. For more information, read the Anthropic blog.

Traditionally there are two main theories of corporate governance: * Shareholders are the owners of the firm, and they should have the final say in how it is run. Of course a board of directors and a chief executive officer run the company day to day, but the shareholders have the ultimate power to ...
