The court has granted Anthropic’s request for a preliminary injunction, preventing the government from banning its products for federal use and formally labeling it as a “supply chain risk,” at least for now. If you’ll recall, things turned sour between the company and the Trump administration when Anthropic refused to change the terms of its contract, which would allow the government to use its technology for mass surveillance and the development of autonomous weapons.
In response to Anthropic’s denial, the President ordered federal agencies to stop using the cloud and other services of the company. The Defense Department has also officially labeled it as a supply chain risk, which is typically reserved for entities based in U.S. adversaries like China that threaten national security. Additionally, department secretary Pete Hegseth warned companies that they would have to sever ties with Anthropic if they wanted to work with the government. The AI company challenged the designation in court, calling it unlawful and a violation of the rights of free speech and due process. It also asked the court to stay the ban pending the trial.
In a court filing, the Defense Department said that giving Anthropic continued access to its warfare infrastructure would “pose unacceptable risk” to its supply chains. But Judge Rita F. of the District Court for the Northern District of California. Lin said the steps the government has taken “appear to be designed to punish Anthropic.”
Lin wrote in his decision that it appeared Anthropic was being punished for criticizing the government in the press. He added, “Punishing Anthropic for publicly investigating the government’s contracting situation is classic illegal First Amendment retaliation.” The judge also said that the supply chain risk designation is arbitrary and capricious, contrary to law. He said the government argued that Anthropic had shown its subversive nature by raising “questions” over the use of its technology. “Nothing in the governing statute supports the Orwellian notion that a U.S. company can be labeled a potential adversary and subversive of America simply for expressing disagreement with the government,” he wrote.
Anthropic said the new York Times It is “grateful to the court for moving quickly” and is now focused on “working productively with the government to ensure all Americans benefit from safe, trusted AI.” The company’s lawsuit is still ongoing, and the court has not yet issued its final decision. However, Judge Lynn said that Anthropic “has shown a likelihood of success on its First Amendment claim.”
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