Court Rules Trump Administration Illegally Blacklisted Anthropic
On Thursday, a judge determined that the Pentagon’s decision to blacklist Anthropic earlier this year was unconstitutional, marking a significant victory for the AI lab in a lengthy struggle against the Trump administration. The lawsuit, initiated in March in a California district court, claimed that the administration unlawfully retaliated against Anthropic for establishing “red lines” regarding unacceptable military applications of its AI technology.
Judge Rita F. Lin, presiding in the northern district of California, stated in her ruling, “The empty invocation of national security is not a blank check to punish and retaliate against government critics.” She further noted that the actions constituted “unlawful retaliation in violation of the First Amendment,” criticizing Defense Secretary Pete Hegseth’s classification of Anthropic as a supply chain risk as “arbitrary and capricious.” While the Department of War has the right to choose its AI vendors, the evidence indicated that the extensive measures taken against Anthropic were both illegal and unfounded.
The conflict began last winter when Hegseth sought to renegotiate contracts with all AI labs, aiming to expand the Pentagon’s authority to utilize AI for “any lawful use.” Most labs agreed to the new terms, but Anthropic held firm, imposing two key restrictions: prohibiting its AI from being used for mass surveillance of Americans or for lethal autonomous weapons—AI systems capable of making kill decisions without human intervention. This refusal sparked a tense exchange, escalating pressure from both sides, accompanied by derogatory remarks from Department of Defense officials and a final ultimatum from the Trump administration.
Just a day before the ultimatum, Anthropic CEO Dario Amodei reaffirmed the company’s position, stating that they had “never raised objections to particular military operations nor attempted to limit use of our technology in an ad hoc manner,” but believed that in certain cases, AI could undermine democratic values rather than protect them. Following this, Anthropic was labeled a “supply chain risk,” a designation typically reserved for national security threats, prompting the Pentagon to seek partnerships with seven other AI labs, including major players like Google, Microsoft, OpenAI, and SpaceX.
In response, Anthropic filed the lawsuit, and in March, Judge Lin ruled in favor of the company, temporarily halting the Pentagon’s blacklist. She pointed out that the Department of War’s records indicated Anthropic was designated as a supply chain risk due to its “hostile manner through the press.” She emphasized that punishing Anthropic for publicly questioning the government’s contracting stance was a clear case of illegal First Amendment retaliation.
In a statement on Thursday, Anthropic spokesperson Danielle Ghiglieri expressed satisfaction with the court’s ruling, stating, “We welcome the court’s ruling that this supply chain risk designation was unlawful. We remain focused on working productively with the government to harness AI for our national security so all Americans benefit from this technology.”
