Federal judge temporarily blocks the Pentagon from branding AI firm Anthropic a supply chain risk

A federal judge has temporarily blocked the Pentagon from designating AI firm Anthropic as a supply chain risk. Judge Rita Lin issued the ruling in response to actions taken by the Trump administration and Defense Secretary Pete Hegseth, who sought to restrict the company's access to government contracts and use of its chatbot, Claude. The judge cited concerns that these measures appeared arbitrary and could cripple Anthropic, particularly Hegseth's use of a military authority typically reserved for foreign adversaries. The ruling follows a hearing where the judge questioned the administration's actions after contract negotiations with Anthropic faltered over the company's attempt to prevent it. The case is taking place in San Francisco federal court.

A judge has sided with AI company Anthropic in its lawsuit against the Pentagon, temporarily blocking directives to halt the use of Anthropic's tools across government agencies. Judge Rita Lin found the government's actions, initiated after public criticism from Donald Trump and a "supply chain risk" designation by Pete Hegseth, as potential First Amendment retaliation aimed at crippling Anthropic and chilling public debate. The lawsuit was filed after the company's business was allegedly impacted and its freedom of speech violated. The Pentagon argued its concerns stemmed from Anthropic's refusal to accept new contract terms, raising security concerns. The ruling allows continued government use of Anthropic's AI tools, like Claude, until the lawsuit is resolved.

A federal judge in California granted Anthropic a temporary injunction against the Department of Defense, pausing punitive measures against the AI firm. Anthropic sued the government, alleging First Amendment violations after being declared a supply chain risk for refusing to allow its Claude AI model to be used for autonomous weapons or mass surveillance. Judge Lin found the government's designation "likely contrary to law" and questioned the rationale behind it, suggesting it seemed like an attempt to cripple Anthropic. The judge's order stays the government's actions for one week while the court hears Anthropic's case. The Department of Defense has not yet commented on the ruling.

In March 2026, a California judge indicated the U.S. Department of Defense may be attempting to illegally punish AI company Anthropic for advocating restrictions on the use of its AI models in weapons and mass surveillance. The Trump administration had designated Anthropic a "supply chain risk" due to its stance on increased AI regulation, potentially blocking the company from military contracts. Judge Rita Lin stated the designation appeared to be an attempt to "cripple Anthropic." Legal analysts suggest this could lead to a preliminary injunction against the Defense Department's designation. Anthropic filed a lawsuit to remove the designation, arguing that the Defense Department's concerns about its "ability to control its own lawful operations" were unfounded.

In San Francisco, Anthropic is challenging the US Pentagon in court over a ban enacted after the AI company refused to remove safety restrictions on its Claude AI model, preventing its use in fully autonomous weapons and mass surveillance. The lawsuit, filed on March 9th, alleges the ban violates Anthropic's freedom of speech and due process rights. The Pentagon designated Anthropic a national security supply chain risk on March 3rd, prohibiting the Defense Department and its contractors from using the technology. Anthropic argues the move is retaliatory for its advocacy for AI guardrails. The hearing, presided over by Judge Rita Lin, will address Anthropic's petition to halt the ban.