US judge halts Pentagon move to classify Anthropic as security threat

A court has granted Anthropic a temporary relief as it disputes the Pentagon's blacklisting move.

On Thursday, US District Judge Rita Lin agreed to Anthropic's plea for a temporary halt to the "Presidential Directive" halting federal agency use of Anthropic's tech, alongside Defense Secretary Pete Hegseth's labeling of the AI pioneer as a "supply chain risk."

Lin also paused the supply-chain designation, stopping it from taking effect while the injunction lasts.

The ruling favours Anthropic and its CEO Dario Amodei, who stood firm against Hegseth's calls.

It's uncertain if the Justice Department will challenge the ruling. Soon after discussions with Anthropic failed, the Pentagon arranged a deal with OpenAI.

"We appreciate the court's prompt action and are pleased they believe Anthropic is likely to be successful," an Anthropic spokesperson conveyed.

"This legal action was essential to protect Anthropic, our clients, and partners, yet our primary focus remains on collaborating effectively with the government to ensure safe, reliable AI benefits all Americans."

In court statements, Anthropic argued that the risk label could threaten their potential billions in revenue. If the injunction holds, Anthropic can continue collaborations with defense contractors.

Lin clarified in her ruling that the Defense Department is not obligated to use Anthropic's offerings.

The California case is watched closely by the tech industry as it examines whether the government can leverage its significant powers to force a major AI company into compliance with contractual terms.

Microsoft, supporting Anthropic, expressed worry over potential outcomes if similar partnerships continue.

Before her verdict, Lin questioned the Justice Department on what appeared to be "an effort to weaken Anthropic."

She noted that the Pentagon could have ceased using Claude, but actions under the Trump administration seemed intended to "penalize" the firm.

"A brief termed it 'attempted corporate destruction.' While unclear if it's destruction, it seems aimed at weakening Anthropic," Lin remarked during the session.

"My specific worry is whether Anthropic faces retribution for critiquing the government's contractual stance publicly."

Beyond the California proceedings, Anthropic has another case pending in the D.C. Circuit addressing the supply chain risk notation.

The stance of the White House and Trump's broader administration towards Anthropic, beyond Lin's ruling, remains to be seen.