Anthropic wins preliminary injunction in DOD fight as judge cites 'First Amendment retaliation'

A federal judge in San Francisco has sided with Anthropic, granting the AI startup a preliminary injunction against the Trump administration's recent actions. The ruling, issued by Judge Rita Lin on Thursday, follows a court hearing where Anthropic's legal team argued against the Pentagon's decision to blacklist the company from federal contracts. Anthropic initiated the lawsuit to contest a directive from President Donald Trump that prohibited federal agencies from utilizing its Claude AI models. The company sought the injunction to halt these measures, which it claims could cause significant financial and reputational damage as the legal proceedings continue. In her order, Judge Lin criticized the government's actions, labeling them as retaliatory under the First Amendment. She highlighted that punishing a company for bringing attention to governmental contracting decisions is a violation of free speech rights. The judge expressed her concerns about the impact of the blacklisting, stating, "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." The controversy began when Defense Secretary Pete Hegseth classified Anthropic as a supply chain risk, claiming that the use of its technology posed a threat to U.S. national security. This designation was communicated to Anthropic through an official letter earlier this month, marking the first time an American company received such a label, which has typically applied to foreign adversaries. As a result of this designation, several defense contractors, including giants like Amazon, Microsoft, and Palantir, are now required to certify that they do not employ Claude in their operations with the military. The Trump administration justified this action by invoking two legal statutes, which Anthropic is now challenging in separate courts. Additionally, in a post on Truth Social, Trump ordered a phased cessation of federal usage of Anthropic's technology, stating, "WE will decide the fate of our Country — NOT some out-of-control, Radical Left AI company run by people who have no idea what the real World is all about." This unexpected move has left many officials in Washington astonished, especially those who had previously endorsed Anthropic's contributions to the Department of Defense (DOD). The company had been recognized for successfully deploying its AI models within classified networks, and negotiations for a significant contract were underway before the tensions escalated. The DOD had been seeking comprehensive access to Anthropic's models, while the startup aimed to ensure its technology would not be used for autonomous weaponry or domestic surveillance. As the dispute heads to court, Judge Lin emphasized that while the DOD has the right to seek alternative AI vendors, the central issue remains whether the government acted within the law in its treatment of Anthropic.