Federal judge rules Pentagon’s supply-chain risk label against Anthropic was unlawful

A U.S. District Court judge in California ruled that the Trump administration’s designation of Anthropic as a supply-chain risk violated the First and Fifth Amendments. Judge Rita Lin found the action constituted unlawful retaliation and denied Anthropic due process, calling the decision ‘arbitrary and capricious.’

The dispute originated from Anthropic’s refusal to allow the Pentagon to use its models for fully autonomous weapons or mass surveillance of U.S. citizens, which the company framed as safety guardrails. The Pentagon countered that it would use the models only for lawful purposes and alleged Anthropic sought to control military use of its technology.

Lin’s ruling highlighted inconsistencies in the government’s actions, noting that the Defense Secretary simultaneously proposed applying the Defense Production Act to Anthropic—an action that would treat the company as essential to national security rather than a threat. The judge also pointed to continued collaboration between the Pentagon and Anthropic on a contract and the government’s work with the company’s new model, Mythos, for cybersecurity.

Lin emphasized that Anthropic ‘undisputedly lacks’ any backdoor access to its technology once delivered to the Department of Defense, rejecting the premise that the company posed a supply-chain risk. She wrote that while the Pentagon may choose its AI vendors, the measures imposed on Anthropic were illegal and baseless.

Anthropic welcomed the ruling and stated it remains focused on collaborating with the government to advance national security through AI. The company has a second lawsuit against the Department of Defense pending in Washington, D.C.