A federal judge in California has ruled that the Trump administration’s designation of Anthropic as a supply-chain risk was illegal, citing ‘unlawful retaliation’ in violation of the First Amendment.

U.S. District Judge Rita Lin’s decision means that Anthropic, which had been labeled a risk to national security, can continue its work without interference from defense agencies. The company’s stance on safety measures for AI use in autonomous weapons and mass surveillance had sparked the dispute, with the Pentagon denying any ill intent.

Lin’s ruling highlights the disconnect between the supply-chain label and other government actions that suggest Anthropic is essential to national security, not a threat. The judge noted that the government’s measures against Anthropic were ‘illegal and baseless’ and emphasized that ‘the empty invocation of national security is not a blank check to punish and retaliate against government critics.’

Anthropic’s spokesperson welcomed the court’s decision, stating, 'We remain focused on working productively with the government to harness AI for our national security so all Americans benefit from this technology.' The company is now embroiled in ongoing legal battles in Washington, D.C.

This victory for Anthropic raises questions about the future of AI regulation and how governments balance technological advancement with national security concerns.