Trump administration illegally retaliated against Anthropic, judge rules

A US district judge has declared the US Department of Defense's designation of AI company Anthropic as a supply chain risk to be illegal and baseless. Anthropic argued that Defense Secretary Pete Hegseth exceeded his authority in making the designation, which came after the company refused to permit the military to utilize its AI models for potential surveillance or autonomous weapons applications.

Judge Rita Lin emphasized that citing national security does not grant an unrestricted power to punish or retaliate against government critics. Anthropic expressed satisfaction with the ruling. Anthropic advocates for productive collaboration with the government to harness AI for national security, benefiting all Americans. The lawsuit labeled the government's actions as unprecedented and unlawful.

The designation categorized Anthropic as a supply chain risk, referencing a law designed to safeguard military systems from foreign sabotage, making it the first time an American company faced such a label. Anthropic contended that its models lacked reliability for military weapon systems and opposed their use for domestic surveillance, deeming it a violation of rights.

The Pentagon argued that private entities should not impede military action, while the White House had previously labeled Anthropic as a radical left-wing company attempting to control military activity. Anthropic claimed that the government's actions impacted its business and infringed upon its freedom of speech rights. During a prior hearing, Judge Lin noted that the government sought to cripple the company and suppress public discourse on military AI usage, describing it as classic First Amendment retaliation.