A federal judge in California has issued an injunction against the Trump administration's designation of AI company Anthropic as a "supply chain risk to national security." The ruling represents an early victory for Anthropic in its legal battle with the government.
The conflict began in February 2026 when President Donald Trump and Defense Secretary Pete Hegseth announced they were cutting ties with Anthropic after the company refused to allow unrestricted military use of its Claude AI model. According to court documents, Anthropic's restrictions included prohibitions on using the technology for lethal autonomous weapons without human oversight and mass surveillance of Americans.
nothing in the governing statute supports the Orwellian notion that an American company may be branded a potential adversary and saboteur of the US for expressing disagreement with the government
In response, the Pentagon labeled Anthropic a supply chain risk and ordered federal agencies to stop using Claude. Judge Rita F. Lin of the Northern District of California called the government's actions "Orwellian" and suggested they appeared to be "classic First Amendment retaliation" against the company for expressing disagreement with government policies.
Judge Lin stated that "nothing in the governing statute supports the Orwellian notion that an American company may be branded a potential adversary and saboteur of the US for expressing disagreement with the government." She added that the "broad punitive measures" taken against Anthropic appeared arbitrary and capricious.
the broad punitive measures taken against Anthropic appeared arbitrary and capricious
Anthropic has filed two lawsuits against the government: one seeking reconsideration of the supply chain risk designation, and another alleging violations of the company's First Amendment rights. The injunction means Anthropic's technology will continue to be used by government agencies and contractors until the lawsuits are resolved.