Judge blocks Pentagon effort to 'punish' Anthropic with supply chain risk label

Summary

A federal judge in California has indefinitely blocked the Pentagon’s effort to “punish” Anthropic by labeling it a supply chain risk and attempting to sever government ties with the AI company, ruling that those measures ran roughshod over its constitutional rights. “Nothing in the governing statute supports the Orwellian notion that an American company may be branded a potential adversary and saboteur of the U.S. for expressing disagreement with the government,” US District Judge Rita Lin wrote in a stinging 43-page ruling. Lin, an appointee of former President Joe Biden, said she would delay implementation of her ruling for one week to allow the government to appeal. But in her ruling, she made it clear she disapproved of the government’s actions, which she said violated the company’s First Amendment and due process rights. The ruling is the latest court defeat for the Trump administration. Earlier this year the Supreme Court ruled many of the president’s sweeping tariffs were illegal. And just last week a federal judge struck down Pentagon press limits. Anthropic applauded Lin’s ruling on Thursday. “We’re grateful to the court for moving swiftly, and pleased they agree Anthropic is likely to succeed on the merits,” an Anthropic spokesperson said after Thursday’s ruling. “While this case was necessary to protect Anthropic, our customers, and our partners, our focus remains on working productively with the government to ensure all Americans benefit from safe, reliable AI.” The supply chain risk designation meant any company that works with the military would need to show it didn’t use an Anthropic product. The label, leveled by the Pentagon last month, had previously been used only for companies seen as connected to foreign adversaries. Anthropic said the designation violated its First Amendment rights, tarnished its reputation and jeopardized hundreds of millions of dollars’ worth of contracts. The Department of Defense’s quarrel with the Anthropic began after th...