A federal judge has granted Anthropic a major reprieve as the AI company challenges the Pentagon’s effective blacklisting.
On Thursday, US District Judge Rita Lin granted Anthropic’s request for a preliminary injunction to temporarily block the “Presidential Directive” that ordered federal agencies to stop using Anthropic’s technology, and Defense Secretary Pete Hegseth’s decision to formally label the AI frontier model maker as a “supply chain risk.”
Lin also stayed the effective date of the supply-chain designation, meaning that it cannot take place while the injunction is in place.
The decision is a victory for Anthropic and its CEO Dario Amodei, who refused to bow to Hegseth’s demands. It is not immediately clear if the Justice Department will appeal the decision. In the hours after talks with Anthropic fell apart, the Pentagon struck a deal with OpenAI.
In court filings, Anthropic officials said the risk designation could jeopardize potentially billions in revenue. If the injunction remains, Anthropic will be able to continue to do business with defense contractors.
Lin wrote in her decision that the injunction does not require the Defense Department to use Anthropic’s products or services.
Many in tech are closely watching the California case, since it tests whether the federal government can use some of its most severe powers to force a major AI company to agree to contractual terms. Microsoft, which filed an amicus brief in support of Anthropic, also said it was concerned about potential repercussions if companies like itself continued to partner with Anthropic.
Ahead of her ruling, Lin grilled the Justice Department over what she said looked like “an attempt to cripple Anthropic.” She said that the Pentagon could have simply discontinued using Claude, but instead, the Trump administration made repeated actions that appeared to be designed to “punish” the company.
“One of the amicus briefs used the term ‘attempted corporate murder.’ I don’t know if it’s murder, but it looks like an attempt to cripple Anthropic,” Lin said during the hearing. “And specifically, my concern is whether Anthropic is being punished for criticizing the government’s contracting position in the press.”
Beyond the California case, Anthropic has a separate suit pending in the D.C. Circuit over the supply chain risk designation.
It also remains to be seen how the White House and the broader Trump administration will treat Anthropic beyond the actions Lin’s ruling compels.
During the hearing, Deputy Assistant Attorney General Eric Hamilton repeatedly said that the Pentagon questions Anthropic’s “reliability and trustworthiness.” Hamilton said that defense officials are concerned Anthropic may try to improperly skew its AI models or shut off access.
In recent weeks, Hegseth, who met with Amodei, said the AI startup put “Silicon Valley ideology above American lives.” President Donald Trump decried the “WOKE COMPANY” run by ” Leftwing nut jobs” in a Truth Social post that was also part of the California lawsuit.
“Their selfishness is putting AMERICAN LIVES at risk, our Troops in danger, and our National Security in JEOPARDY,” Trump wrote on Truth Social on February 27.
Read the full article here
