On Thursday, U.S. District Judge Rita Lin temporarily blocked the U.S. government’s effort to sideline Anthropic.
Judge Flags ‘First Amendment Retaliation’ In AI Dispute
Lin specifically criticized directives tied to Donald Trump that sought to cut off federal contracts with Anthropic and label it a “supply chain risk.”
She described the measures as “classic” retaliation. “These broad measures do not appear to be directed at the government’s stated national security interests.”
The judge added that the actions seem designed to punish the company.
“Punishing Anthropic for bringing public scrutiny to the government’s contracting position is classic illegal First Amendment retaliation,” she noted in her 43-page judgment.
Clash Over AI Ethics And Military Use
The dispute stems from Anthropic’s restrictions on how its AI model, Claude, can be used.
The company has opposed deployment in autonomous weapons and mass surveillance, while the Pentagon has argued for broader use under “all lawful” conditions.
Anthropic claims the backlash followed its public stance, calling it a protected viewpoint.
Lin appeared to agree, noting there is no legal basis to treat a U.S. company as a potential adversary for disagreeing with the government.
“If the concern is the integrity of the operational chain of command, the Department of War could just stop using Claude,” Lin wrote.
Adding, “The record supports an inference that Anthropic is being punished for criticizing the government’s contracting position in the press.”
Temporary Block, Pentagon Could Appeal
The ruling pauses enforcement of the ban for one week, giving the Justice Department time to appeal.
While the Pentagon can still choose not to use Anthropic’s technology, broader restrictions — including barring contracts — are blocked for now.
In an emailed statement to Benzinga, an Anthropic spokesperson said it is “grateful” for the decision. “While this case was necessary to protect Anthropic, our customers and our partners, our focus remains on working productively with the government to ensure all Americans benefit from safe, reliable AI.”
Pentagon did not immediately respond to Benzinga’s request for comments.
Anthropic has independently contested the administration’s actions in a federal appeals court in Washington, D.C., with a decision still forthcoming.
Anthropic counts Amazon.com, Inc. (NASDAQ:AMZN) and Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google among its key strategic partners.
Last year, Microsoft Corp (NASDAQ:MSFT) and Nvidia Corp (NASDAQ:NVDA) also made major funding commitments, with the latter pledging up to $10 billion and Microsoft up to $5 billion.
Benzinga Edge Stock Rankings show that Amazon is in a downtrend across short, medium and long-term timeframes, yet its Growth ranks in the top 5th percentile.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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