A federal judge in California has indefinitely blocked the Pentagon's attempt to label Anthropic a supply chain risk, ruling the move violated the AI company's constitutional rights. US District Judge Rita Lin said the government's actions amounted to retaliation for Anthropic's refusal to remove safety guardrails from its Claude AI model, particularly restrictions on autonomous weapons and mass surveillance.

Lin's 43-page ruling criticized the Defense Department's unprecedented designation, which would have forced military contractors to prove they weren't using Anthropic products. The judge noted the label had previously been reserved for companies linked to foreign adversaries, not American firms exercising free speech. Anthropic argued the designation damaged its reputation and jeopardized hundreds of millions of dollars in contracts.

The case represents the latest legal defeat for Defense Secretary Pete Hegseth, who has faced multiple court rulings against his aggressive use of executive authority. Earlier this month, a DC judge found Hegseth violated reporters' First Amendment rights with a restrictive press policy. The Department of Defense wanted unfettered access to Claude for 'all lawful purposes,' but Anthropic maintained its ethical boundaries were protected speech.