Judge blocks Pentagon's Anthropic blacklist

A federal judge on Thursday struck down the Pentagon's blacklisting of Anthropic as a supply-chain risk, ruling that the government's actions violated Anthropic's constitutional rights.

Why it matters: The ruling marks a major legal victory for Anthropic in its months-long fight with the Trump administration over how the military can use its AI models.

Driving the news: "The empty invocation of national security is not a blank check to punish and retaliate against government critics," U.S. District Judge Rita Lin wrote in her 59-page ruling.

• Lin noted that the Pentagon continued pursuing work with Anthropic even after the designation: "None of that is consistent with a genuine fear that Anthropic is a saboteur who would poison its software to harm national security."

What they're saying: "We are pleased the court has ruled that this supply chain risk designation was unlawful," an Anthropic spokesperson said in a statement.

• "We remain focused on working productively with the government to harness AI for our national security so all Americans benefit from this technology."

Catch up quick: The dispute kicked off earlier this year after Anthropic and the Pentagon clashed over the military's use of the company's AI models.

• The Defense Department sought to use Claude for "all lawful purposes," even in the most sensitive military and intelligence applications.
• Anthropic insisted that two areas remain off-limits: mass surveillance of Americans and fully autonomous weapons.
• The standoff escalated, with the Pentagon designating Anthropic a national security and supply-chain risk, leading the AI company to sue.

What's next: The government is expected to appeal.

• Anthropic is also fighting a separate Pentagon designation under a different statute in the D.C. Circuit.