US judge rules Pentagon illegally retaliated against Anthropic

US District Judge Rita Lin ruled that the Department of Defense acted unlawfully when it designated AI startup Anthropic as a supply chain risk, a move typically reserved for foreign companies. The judge called the designation 'illegal and baseless' and said citing national security was 'not a blank check to punish and retaliate against government critics.' The dispute began after Anthropic refused to allow the military to use its AI models for tasks including surveillance or autonomous weapons. The Pentagon designated Anthropic in February, marking the first time an American company had been publicly designated as such. Anthropic sued, arguing the government overstepped its authority and violated the company's free speech rights. Judge Lin noted the government was trying to 'cripple' the company and 'chill public debate' over military use of AI, calling it 'classic First Amendment retaliation.' Anthropic welcomed the ruling, while the Pentagon and White House have not yet commented.