US Court Rules Pentagon Ban of Anthropic ‘Unlawful’

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SAN FRANCISCO: A US federal judge has ruled that sanctions imposed by the Trump administration against artificial intelligence company Anthropic were illegal, finding that the government unlawfully retaliated against the firm for publicly criticizing Pentagon policy.

Judge Rita Lin issued a 59-page decision barring federal agencies from enforcing President Donald Trump's order to stop using Anthropic’s Claude AI tools. 

The ruling permanently overturns Defense Secretary Pete Hegseth's designation of the company as a 'supply chain risk,’ a label historically reserved for foreign entities.

The dispute originated when Anthropic refused to permit the US military to utilize its Claude AI models for fully autonomous lethal weapons or mass surveillance of American citizens. 

Following the refusal, the administration canceled Anthropic’s military contracts and barred Pentagon contractors from using its technology.

Judge Lin determined the sanctions were driven by a desire to punish Anthropic for its criticism rather than to counter a legitimate security threat.

While Anthropic welcomed the decision, a secondary sanction regarding public procurement regulations remains pending in a Washington court.