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The dispute followed Anthropic’s refusal to permit the US military to deploy its Claude AI models for fully autonomous lethal weapons or for mass surveillance of Americans.
The logo of the US artificial intelligence safety and research company Anthropic displayed on a smartphone’s screen. (Source: AFP)
A United States federal court on Thursday struck down sanctions imposed by the Trump administration on artificial intelligence company Anthropic, stating that the government retaliated against the firm after it publicly criticised the Pentagon.
In a 59-page ruling issued Thursday, US District Judge Rita Lin said national security considerations could not be used as a justification for penalising a company for expressing criticism of the government.
“The empty invocation of national security is not a blank check to punish and retaliate against government critics,” Lin said in the decision, according to AFP.
The ruling prevents the federal agencies named in Anthropic’s lawsuit from enforcing President Donald Trump’s directive that prohibited the use of the company’s Claude AI tools.
It also overturns former Defence Secretary Pete Hegseth’s decision to classify Anthropic as a “supply chain risk” – a designation traditionally associated with foreign companies.
The decision makes permanent the temporary suspension of the sanctions that Lin had ordered in March and comes into force immediately. The administration can still challenge the ruling before a higher court.
How Anthropic Reacted To Court’s Ruling
Anthropic welcomed the decision.
“We welcome the court’s ruling that this supply chain risk designation was unlawful,” an Anthropic spokesperson said on Thursday.
“We remain focused on working productively with the government to harness AI for our national security so all Americans benefit from this technology,” he added.
Also Read: Anthropic Suspends Use Of Top AI Models After Trump Administration Blocks Foreign Access
Why Did Trump Target Anthropic?
The dispute followed Anthropic’s refusal to permit the US military to deploy its Claude AI models for fully autonomous lethal weapons or for mass surveillance of Americans.
Trump responded sharply to the company’s position. In a February social media post, he described Anthropic as a “radical left, woke company” and “out-of-control.”
Lin found that the government’s action was not genuinely aimed at addressing a security threat. Instead, she concluded that the sanctions were intended to publicly penalise Anthropic for challenging the administration.
The judge said the sanctions “were based on a desire to make a public example out of Anthropic for its ‘arrogance’ in criticising the government” rather than to address an actual threat.
How US Military Used Anthropic’s AI systems
Anthropic’s AI systems had already been used by the US military in classified and sensitive operations. Reports from The Wall Street Journal and Axios said Claude was among the systems used during the January operation that resulted in the capture of Venezuelan leader Nicolas Maduro.
The Pentagon’s supply-chain designation, formally issued in March, had the effect of terminating military contracts with Anthropic while also preventing other Pentagon contractors from using its technology.
Anthropic Still Faces Another Pentagon Sanction
Thursday’s ruling does not resolve the company’s entire legal fight with the Pentagon.
A separate measure imposed by the Defence Department on the same day under federal public-procurement rules remains operative. A Washington judge declined to halt that action in April, and the issue is still awaiting a final ruling.
The White House has also clashed with Anthropic CEO Dario Amodei over his repeated public warnings about the potential consequences of increasingly powerful AI, including its impact on employment.
The legal victory comes as Anthropic prepares for a potentially major Wall Street debut. The company’s expected public listing could take place within weeks and, according to the information provided, potentially surpass the record-setting June debut of SpaceX, which raised $86.2 billion.
With inputs from AFP
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Prisha is the Chief Sub-Editor at News18.com, with more than 10 years of experience in national and international news. She specialises in editorial leadership, sharp news judgment, and high-impact st…Read More
Washington D.C., United States of America (USA)
August 28, 2026, 09:33 IST
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