A California federal judge ruled Thursday that the Pentagon’s blacklisting of AI lab Anthropic was unconstitutional, siding with the company in a monthslong legal fight with the Trump administration. Judge Rita F. Lin found the Defense Department’s actions violated the First Amendment, calling the designation a form of unlawful retaliation after Anthropic refused to remove restrictions on military use of its AI technology.
The dispute began when Defense Secretary Pete Hegseth sought to renegotiate AI lab contracts to allow the Pentagon broader authority, including for mass surveillance and lethal autonomous weapons. Anthropic resisted, citing risks to democratic values, and was subsequently labeled a "supply chain risk"—a classification typically reserved for national security threats. The Pentagon then moved to replace Anthropic with seven other AI labs, including Google, Microsoft, and OpenAI.
Anthropic filed suit in March, arguing the blacklist was retaliation for public criticism. Judge Lin agreed, stating the Pentagon’s records showed the designation stemmed from Anthropic’s "hostile manner through the press." The company called the ruling a win and reaffirmed its commitment to working with the government on AI for national security.
The decision blocks the Pentagon’s attempt to sideline Anthropic and sets a precedent for future disputes over AI use and government overreach.
