A federal judge in California has indefinitely blocked the Pentagon’s effort to designate AI firm Anthropic as a supply chain risk, halting actions that would cut the company off from government-linked contracts.
U.S. District Judge Rita Lin ruled the designation violated constitutional protections, writing that federal law does not support branding a U.S. company as a potential adversary over disagreements with the government. In a 43-page decision, Lin said the move infringed on Anthropic’s First Amendment and due process rights.
The Pentagon’s designation required contractors to prove they were not using Anthropic products, a restriction previously reserved for entities tied to foreign adversaries.
Lin delayed enforcement of her ruling for one week to allow the federal government time to appeal.
