A U.S. district judge has ruled that the Department of Defense unlawfully designated AI startup Anthropic as a supply‑chain risk, calling the move “illegal and baseless.”


The decision follows the Pentagon’s February designation of the company—an action typically reserved for firms in nations deemed hostile to American security—after Anthropic declined to license its Claude‑powered models for military surveillance or use in autonomous weapons systems.


Judge Rita Lin said that citing national security is “not a blank check to punish and retaliate against government critics.” She further stated that the Pentagon’s order effectively “crippled” the business and sought to chill public debate about AI’s role in warfare.


Anthropic welcomed the ruling, with its spokesperson saying the firm is focused on working productively with U.S. institutions to harness AI for national security so that all Americans benefit from the technology. The company also highlighted that its models are not yet safe for weapon systems and opposed their use in domestic surveillance.


The Pentagon had warned that private companies should not be able to dictate military action, while the White House previously labeled Anthropic a “radical left, woke company” that attempts to control warfare. The lawsuit argues that the government’s actions violate the company’s First Amendment rights and represent unprecedented retaliation.


The judge’s ruling underscores growing legal friction between tech firms and federal authorities as the U.S. grapples with the strategic implications of AI in defense.