Federal judge says it looks like the Pentagon tried to 'cripple Anthropic'

A federal judge in San Francisco sharply criticized the Pentagon on Tuesday for its efforts to blacklist Anthropic amid a dispute regarding the company's artificial intelligence technologies. Judge Rita Lin expressed concern that the actions taken by the Department of Defense appeared to be a deliberate attempt to undermine Anthropic, rather than simply opting to engage with a different AI provider. During a hearing focused on whether the Pentagon's designation of Anthropic as a 'supply chain risk' could remain in place while the company's legal challenge proceeds, Judge Lin remarked, 'It looks like an attempt to cripple Anthropic.' This designation, issued by Defense Secretary Peter Hegseth on March 3, marked a significant precedent as it was the first time a U.S. company faced such a label, effectively placing Anthropic on a government blacklist that restricts its contracts and the use of its technologies. Prior to this designation, Anthropic's CEO, Dario Amodei, publicly rejected the Pentagon's demands for unrestricted access to its AI models, citing concerns that such an arrangement could lead to misuse, including potential surveillance of American citizens or the development of autonomous weapons without adequate safety measures. Judge Lin, who has presided over other notable technology-related cases, described the Pentagon's choice to label Anthropic as a supply chain risk as 'troubling,' noting that such measures are typically reserved for adversaries of the U.S. government. Judge Lin further pointed out that the Department of Defense could have simply ceased using Anthropic's AI, rather than taking steps that seem punitive. In response to the Pentagon's actions, Anthropic has filed lawsuits seeking to both temporarily and permanently block the supply chain designation and another order from President Donald Trump that mandates all federal agencies stop using Anthropic’s technology within six months. Anthropic's legal team argued that the designation poses a threat to hundreds of millions of dollars in potential revenue and jeopardizes the company's reputation and First Amendment rights. The case has drawn significant attention from Silicon Valley, as a broad interpretation of the Pentagon's restrictions could have far-reaching implications for partners like Microsoft, which has filed a brief in support of Anthropic. The outcome of this case will likely test the limits of the federal government's authority in regulating AI vendors through its national security and contracting powers.