A U.S. federal judge in California ruled on Thursday evening that the Trump administration’s classification of Anthropic as a supply‑chain risk was illegal. The ruling was issued by U.S. District Judge Rita Lin.
Judge Lin found that Defense Secretary Pete Hegseth’s labeling of Anthropic as a national‑security risk amounted to “unlawful retaliation” in violation of the First Amendment, and described the decision as “arbitrary and capricious.” She also concluded that Anthropic was denied due process as required by the Fifth Amendment.
Earlier this year, Pete Hegseth and President Donald Trump designated Anthropic a supply‑chain risk and ordered all federal agencies, including those outside the defense sector, to stop working with the maker of the Claude model.
The dispute arose after Anthropic imposed firm safety limits — guardrails — that would prevent the Pentagon from using its models for fully autonomous weapons or mass surveillance of U.S. citizens. The Department of Defense denied it intended to use Anthropic models for anything but lawful purposes, while also arguing that Anthropic might try to restrict how the military uses models it purchased.
In her opinion, Lin wrote that the government’s “words and deeds confirm that the challenged actions were based on a desire to make a public example out of Anthropic for its ‘arrogance’ in criticizing the government.” She highlighted inconsistencies between the supply‑chain label and other government actions, such as Hegseth’s suggestion to apply the Defense Production Act to Anthropic — a move that would signal the company is essential to national security rather than a threat.
Lin also noted that the Department of Defense continued to pursue a contract with Anthropic and that the government was collaborating with the company’s new model, Mythos, on cybersecurity. The judge emphasized that Anthropic “undisputedly lacks” any backdoor access to its technology once it transfers it to the DOD.
“Though the Department of War is undisputedly free to select the AI vendor of its choice, the evidence demonstrates that the broad measures imposed on Anthropic were illegal and baseless,” Lin wrote. “The empty invocation of national security is not a blank check to punish and retaliate against government critics.”
An Anthropic spokesperson told TechCrunch they “welcome the court’s ruling that this supply chain risk designation was unlawful,” and said the company remains focused on working productively with the government to harness AI for national security so all Americans benefit from the technology.
Anthropic filed two complaints against the Department of Defense in March, one in California and one in Washington, D.C.; the D.C. suit remains pending. TechCrunch reported it had reached out to the Department of Defense for comment.
Why this matters
The ruling sets a legal check on how the government can label technology suppliers as national‑security risks. It may influence future government actions involving AI vendors, defense procurement, and the balance between national‑security prerogatives and corporate speech and due‑process protections.
