Trump Administration Illegally Retaliated Against AI Start‑up Anthropic, Judge Rules


US President Donald Trump and Secretary of Defense Pete Hegseth listen to questions from the press during a Cabinet meeting.
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A judge has ruled that the US Department of Defense acted unlawfully when it dubbed AI start‑up Anthropic a supply‑chain risk, calling the move “illegal and baseless.”


In the lawsuit, Anthropic argued that Defense Secretary Pete Hegseth overstepped his authority by designating the company after Anthropic refused to allow the military to use its models for surveillance or autonomous weapons.


District Judge Rita Lin emphasized that citing national security does not give the government a blank check to punish critics.


Anthropic welcomed the ruling, saying it remains ready to work with the government to harness AI for national security while protecting civil liberties.


The Pentagon had marked Anthropic as a supply chain risk in February – the first time a US company has been publicly given that designation.


Judge Lin highlighted the government’s attempts to “cripple” the company, labeling the action as classic First Amendment retaliation.


Anthropic’s lawyers say its freedom of speech was violated and its business was harmed by the government’s legal threats.