A federal judge in San Francisco ruled Thursday that the Pentagon acted illegally when it labeled AI company Anthropic a supply chain risk, finding the designation violated the First Amendment.
\n\nCNBC reports that U.S. District Judge Rita Lin found that the Department of Defense punished Anthropic for criticizing the administration publicly, not for an actual security concern. The designation, issued in March 2026, made Anthropic the first American company publicly named a supply chain risk. That label barred defense contractors from using its technology in Pentagon-related work.
\n\nThe dispute traces back to collapsed negotiations over military use of Anthropic’s Claude AI models. Anthropic wanted assurances that its technology wouldn’t be used for fully autonomous weapons or domestic mass surveillance. The Defense Department wanted unrestricted access to Claude for any lawful purpose instead. When talks broke down, DOD designated the company a supply chain risk.
\n\nBreitbart News reported on Anthropic’s lawsuit when it was filed:
\n\nThe company’s complaint states that federal government contracts are already being terminated, while both current and prospective private sector agreements face uncertainty. According to the filing, these actions jeopardize hundreds of millions of dollars in near-term revenue. Anthropic CFO Krishna Rao provided additional context in a…
Original source: https://www.breitbart.com/tech/
