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Federal Judge Blocks Pentagon Designation of AI Company as Supply-chain Risk

A federal judge has blocked the Pentagon from designating AI company Anthropic as a supply-chain risk

President Trump and War Secretary Pete Hegseth announced a federal boycott of Anthropic after it refused to remove guardrails on its AI product Claude, against the Pentagon’s wishes

Federal Judge Blocks Pentagon Designation of AI Company as Supply-chain Risk Image Credit: Win McNamee / Staff / Getty Images
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A federal judge has blocked the Pentagon from designating AI company Anthropic as a supply-chain risk.

The designation, under a federal law designed to protect military systems from sabotage by foreign actors, effectively prevents a company from doing business with the federal government and its contractors.

The move against Anthropic was the first time a domestic company had been added to the blacklist.

US District Judge Rita Lin of San Francisco issued a preliminary injunction blocking the move, giving the federal government seven days to launch an appeal.

President Trump and War Secretary Pete Hegseth announced a federal boycott of Anthropic after it refused to remove guardrails on its AI product Claude, against the Pentagon’s wishes.

On Truth Social, Trump said Anthropic was attempting to “strong-arm” the federal government by dictating military policy.

Anthropic said it did not want Claud to be used for mass surveillance and fully autonomous weapons.

The Pentagon denied wanting to use the program for those purposes.

Judge Lin said the designation was probably illegal and arbitrary, and said the Pentagon had not shown the company’s insistence on guardrails could lead to sabotage.

She said the Pentagon is punishing Anthrppic for “criticizing the government’s contracting position in the press,” which constitutes “classic illegal First Amendment retaliation.”

Anthropic has filed a separate lawsuit in the US Court of Appeals for the District of Columbia.


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