Anthropic wins court case against Pentagon

A federal judge ruled on Thursday evening that the Pentagon's designation of Anthropic as a supply-chain risk was illegal. U.S. District Judge Rita Lin said Defense Secretary Pete Hegseth's labeling of the AI company represented "unlawful retaliation" and was "arbitrary and capricious."

Judge Lin stated the action violated the First Amendment and denied Anthropic due process under the Fifth Amendment. The ruling marks the first legal win for Anthropic in its dispute with the Department of Defense.

The Dispute Over Safety Guardrails

The conflict originated from Anthropic's firm stance on specific safety protocols. The company set hard lines that would restrict the Pentagon from using its models for fully autonomous weapons or mass surveillance of American citizens. The Pentagon denied any intention to use the models for unlawful purposes. It alleged Anthropic sought to control the military's use of technology it had purchased.

Earlier this year, Secretary Hegseth and President Donald Trump labeled Anthropic a supply-chain risk. This order compelled all federal agencies to cease work with the Claude maker.

A Ruling of Retaliation

In her decision, Judge Lin concluded the government aimed to make a public example of Anthropic. She cited its criticism of government plans as the reason. "The evidence demonstrates that the broad measures imposed on Anthropic were illegal and baseless," Lin wrote.

She highlighted contradictions in the government's position. Lin noted Hegseth had proposed applying the Defense Production Act to Anthropic, which would deem the company essential to national security. The Department of Defense also continued pursuing a contract with Anthropic and collaborated on its new Mythos model for cybersecurity.

Lin found it clear Anthropic "undisputedly lacks" any backdoor access to its technology after transferring it to the DOD. "The empty invocation of national security is not a blank check to punish and retaliate against government critics," she added.

Company Response and Ongoing Case

Anthropic welcomed the court's decision. A company spokesperson said, "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 DOD in March, one in California and one in Washington, D.C. The D.C. lawsuit remains ongoing. TechCrunch reported it has contacted the Department of Defense for comment on the ruling.