Judge: Trump Admin Still Can't Prove Anthropic 'Supply Chain Risk

During a hearing held on Thursday, a judge determined that the Trump administration had not presented sufficient evidence to justify designating Anthropic as a "supply chain risk" and subsequently prohibiting the federal government from utilizing the company's technology.

This development was initially reported by news outlets including Bloomberg and Axios.

The core of the dispute stems from stalled contract negotiations between Anthropic and the Department of Defense. Anthropic stated its reluctance for its AI to be employed in mass surveillance of Americans or for targeting and firing decisions involving lethal weapons, asserting the technology was not yet prepared for such applications. The Pentagon countered that a private company should not dictate how the military uses technologies, affirming its commitment to using these tools in "lawful" ways.

The government further argued that Anthropic's public criticism of the DoD warranted the ban – a rationale U.S. District Judge Rita Lin deemed "really troubling." She warned that such an approach could set a dangerous precedent, potentially leading to retaliation against federal contractors who express disagreement with the administration.

The DOD additionally claimed that Anthropic could potentially disable or modify its AI models during warfighting operations – an assertion that, according to experts, lacks substantiation. Judge Lin concurred, stating she found no proof Anthropic could alter a delivered model or "flip some kind of kill switch."

Thursday’s hearing was part of one of two lawsuits Anthropic filed against the DOD in March, challenging both the ban and the risk designation. The second lawsuit is currently being heard in Washington.

Judge Lin, who issued a temporary injunction against the ban in March, is now deliberating whether to make that order permanent.