US Judge Blocks Pentagon Blacklisting of Anthropic in AI Safety Dispute

A US federal judge has blocked the Pentagon from blacklisting artificial intelligence company Anthropic, marking a significant development in the dispute between the technology firm and the US military over the use of AI in warfare and surveillance.

US District Judge Rita Lin ruled on Thursday that the Pentagon’s decision to designate Anthropic as a national security supply-chain risk was “illegal and baseless.” The ruling temporarily prevents the Defense Department from enforcing the designation while the wider legal battle continues.

Anthropic, the company behind the Claude AI chatbot, sued the Pentagon in federal court in California, arguing that Defense Secretary Pete Hegseth exceeded his authority by imposing the designation.

The dispute began after Anthropic refused to allow the military to use Claude for certain forms of domestic surveillance and autonomous weapons. Company executives have argued that current AI systems are not reliable enough to safely operate autonomous weapons and have raised concerns about surveillance and constitutional rights.

The Pentagon has taken a different position, arguing that private technology companies should not be able to impose restrictions that limit military operations.

Hegseth’s decision to classify Anthropic as a supply-chain risk was unprecedented for a US company. The designation can be used when a business is considered capable of exposing military systems to potential infiltration or sabotage by hostile foreign powers.

The action also restricted Anthropic’s ability to participate in certain military contracts. The company said the move could cost it billions of dollars in business and damage its reputation.

In a 59-page order, Lin rejected the government’s justification for the designation. She said national security could not be used as a broad justification for punishing companies that criticise government policy.

Anthropic argued in its lawsuit that the Pentagon had violated its First Amendment rights by retaliating against the company for its position on AI safety. It also claimed that the government violated its Fifth Amendment right to due process by imposing the designation without giving the company an opportunity to challenge it.

The company said the Pentagon’s action was unsupported by evidence and contradicted earlier statements praising Claude’s capabilities.

The Justice Department defended the government’s decision, arguing that Anthropic’s restrictions on military use of Claude could create uncertainty for the Pentagon and potentially interfere with military systems during operations.

Government lawyers said the designation was based on Anthropic’s refusal to accept contractual conditions rather than its views on AI safety.

The legal dispute is not over. Anthropic has another lawsuit pending in Washington, DC, involving a separate Pentagon supply-chain designation that could potentially prevent the company from securing civilian government contracts.

The case highlights a growing conflict between AI companies and governments over how rapidly developing technology should be used in national security, military operations and surveillance.