Federal judge blocks Pentagon blacklist of Anthropic, calls move unconstitutional retaliation

Federal judge blocks Pentagon blacklist of Anthropic, calls move unconstitutional retaliation

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News Editor
2026-08-28 10:09:50
Anthropic won a key court ruling after a U.S. federal judge rejected the Department of Defense decision to label the company a "supply chain risk," according to CNBC's Aug. 28 report. Judge Rita Lin said the designation was retaliatory and violated First Amendment protections, writing that vague appeals to national security do not give the government a "blank check" to punish critics. The label can be used to identify companies seen as possible vulnerabilities to military systems and can effectively shut them out of Pentagon procurement. The dispute stems from a lawsuit Anthropic filed on March 9, accusing Defense Secretary Pete Hegseth of overstepping his authority and using the designation to punish the company for its public views on AI safety. Anthropic has argued that current AI models are not reliable enough for autonomous weapons and has opposed the use of AI for domestic surveillance. The ruling does not fully end the fight: a related case in Washington, D.C., is still ongoing, and Anthropic remains temporarily classified as a supply chain risk while that process continues.

Anthropic scored an important court win in its fight with the Pentagon. According to CNBC on Aug. 28, a U.S. federal judge rejected the Department of Defense decision to classify Anthropic as a "supply chain risk," finding that the move was retaliation against a critic and violated the First Amendment.

Judge says national security cannot be used as a blank check

U.S. District Judge Rita Lin ruled that the Pentagon's decision to attach the national security supply chain risk label to Anthropic was retaliatory and infringed on constitutional free speech protections. In the ruling, she wrote: "Vague invocations of national security are not a blank check to punish and retaliate against government critics."

The "supply chain risk" label is used by the government for companies seen as potentially exposing military systems to infiltration or disruption by adversaries. Once applied, the designation can effectively exclude a company from Defense Department procurement.

Case traces back to a March 9 lawsuit

The dispute began with a lawsuit Anthropic filed on March 9 this year. The company accused Defense Secretary Pete Hegseth of exceeding his authority by placing Anthropic on the national security supply chain risk list as retaliation for its public stance on AI safety.

Anthropic has argued that AI models are not yet reliable enough to be used in autonomous weapons. It has also opposed the use of AI for domestic surveillance.

Related litigation in Washington is still underway

The ruling is only a partial victory. Anthropic's related case in Washington, D.C., is still moving forward. Until that case is resolved, the company will temporarily remain under the "supply chain risk" designation as a procedural matter.

This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan.
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