US Court Halts Pentagon from Targeting AI Firm Anthropic

(MENAFN) A US federal judge has halted a Pentagon order labeling AI firm Anthropic as a national security threat, ruling that officials likely violated the law and retaliated against the company over its public statements about responsible technology use.

Anthropic, a leading developer of large language models, has been in conflict with the Department of Defense regarding military applications of its Claude system. Defense officials had sought to permit the AI for “all lawful uses,” but the company objected, citing concerns that it could enable mass domestic surveillance or fully autonomous weapons. Following Anthropic’s resistance, the Pentagon ended negotiations, imposed the national security designation, and ordered contractors to stop using Claude.

On Thursday, US District Judge Rita Lin also blocked a directive to terminate all government contracts with Anthropic, describing the Pentagon’s actions as a “classic” First Amendment retaliation. Lin wrote, “Nothing in the governing statute supports the Orwellian notion that an American company may be branded a potential adversary… for expressing disagreement with the government,” adding that such designations are generally reserved for “foreign intelligence agencies, terrorists, and other hostile actors.”

Anthropic filed a lawsuit against the administration of US President Donald Trump on Monday, calling the designation “unprecedented and unlawful” and asserting that it was retaliation for criticizing government policy. The company stated, “The Constitution does not allow the government to wield its enormous power to punish a company for its protected speech.”

Last month, Trump ordered all federal agencies, including the Pentagon, to stop using Anthropic’s technology, allowing a six-month phase-out period for systems already in use.

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