A federal judge in California has blocked the Trump administration from designating Anthropic as a supply chain risk to national security and cutting off the AI company’s work with federal agencies.
Anthropic sued the Defense Department and other federal agencies this month after the Pentagon labeled it a "supply-chain risk to national security." President Donald Trump said he would also ban the use of Anthropic’s products across other federal agencies.
“Defendants’ designation of Anthropic as a 'supply chain risk' is likely both contrary to law and arbitrary and capricious,” U.S. District Judge Rita Lin of Northern California wrote in her order Thursday night. “The Department of War provides no legitimate basis to infer from Anthropic’s forthright insistence on usage restrictions that it might become a saboteur.”
Lin paused her order for a week to allow the administration time to appeal.