A federal judge in California ruled that the Trump administration’s designation of Anthropic as a supply-chain risk was unlawful. U.S. District Judge Rita Lin stated that Defense Secretary Pete Hegseth’s labeling of Anthropic as a national security risk constituted “unlawful retaliation” in violation of the First Amendment and was “arbitrary and capricious.” The ruling also found that Anthropic was denied due process, as required under the Fifth Amendment.

The dispute arose from Anthropic’s refusal to allow the Pentagon to use its models for fully autonomous weapons and mass surveillance of American citizens. The Pentagon alleged that Anthropic sought to control the military’s use of the models it purchased. Judge Lin noted inconsistencies between the supply-chain label and other government actions, such as Hegseth’s proposal to apply the Defense Production Act to Anthropic, suggesting the company was essential to national security rather than a threat. She also highlighted the Department of Defense’s continued pursuit of a contract with Anthropic and collaboration on its new model, Mythos, for cybersecurity purposes. Lin emphasized that Anthropic “undisputedly lacks” any backdoor access to its technology once transferred to the DOD, concluding that the broad measures imposed on Anthropic were illegal and baseless. Source

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