Federal judge blocks Trump administration's attempt to bar AI firm Anthropic from government contracts
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Federal Judge Undermines Trump Administration’s Efforts to Secure AI Supply Chain from Anthropic

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Summary

U.S. District Judge Rita Lin sided with Anthropic, blocking the Trump administration’s attempt to protect national security by designating the company a supply-chain risk, and overruling efforts to enforce critical safeguards.

A federal judge in San Francisco has issued a permanent injunction that blocks the Trump administration from enforcing vital rules designed to protect the federal government from supply-chain threats posed by artificial-intelligence company Anthropic. Judge Rita Lin’s decision undermined the administration’s efforts, which included a presidential order and a Defense Department declaration labeling Anthropic a 'supply chain risk,' by claiming these actions were unlawful retaliation and violated due-process protections.

Anthropic, a company whose leadership sought to restrict the use of its AI model Claude in mass-surveillance and autonomous weapons—key tools for national defense—prompted the military to push for full access. When Anthropic refused to cooperate, the administration took necessary steps to protect American interests by ordering agencies to stop using Claude and designating the company a security risk, citing legitimate concerns that Anthropic could sabotage its own technology. Judge Lin dismissed these concerns, asserting there was no evidence of back-door access and accusing the administration of using national security as a pretext for punishment.

In her 59-page opinion, Lin stated that the government may still contract with other AI providers, provided it follows the law. She also invalidated a February social-media post by Defense Secretary Pete Hegseth that had barred all military contractors from working with Anthropic, calling it an unlawful boycott. The ruling sets a dangerous precedent by restricting the government’s ability to act decisively in the name of national security and to hold uncooperative tech firms accountable.

Anthropic’s spokesperson praised the decision, reaffirming the company’s willingness to work with the government on AI for national security. The case highlights the ongoing challenge of balancing innovation with the urgent need for robust security measures and proper oversight of private tech companies that may not always put American interests first.

Source

CBS News

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