U.S. District Judge Rita Lin said Thursday that the Trump administration has not produced enough evidence to support its decision to brand AI start‑up Anthropic a supply‑chain risk and to bar federal agencies from using the company’s technology.
The hearing, held in San Francisco, followed reports by Bloomberg and Axios that the administration moved to label the firm after contract negotiations with the Department of Defense stalled.
Anthropic has refused to allow its models to be used for mass surveillance of Americans or for targeting or firing decisions involving lethal weapons, arguing the technology is not yet ready for such applications.
The Pentagon countered that a private contractor cannot dictate how the military employs its tools, insisting any use would be "lawful" and consistent with existing policy.
Government lawyers also pointed to Anthropic’s public criticism of the DOD as justification for the ban, a rationale Judge Lin called "really troubling" and warned could set a precedent of retaliating against contractors who dissent.
In addition, the Department of Defense alleged that Anthropic could potentially disable or alter its AI models during wartime operations—a claim that experts testified lacks factual support.
Lin asked for concrete proof that Anthropic could "flip some kind of kill switch" or otherwise modify a delivered model. The court heard no such evidence, and the judge noted the absence of any technical demonstration.
Anthropic filed two lawsuits in March challenging both the supply‑chain risk designation and the broader ban. One case is being heard in Washington; the San Francisco hearing is the second.
Earlier this year, Lin issued a temporary order blocking the ban. The current hearing will determine whether that injunction becomes permanent.
Legal analysts say the judge’s skepticism may force the administration to revisit its risk‑assessment methodology as AI systems become more embedded in defense planning.
The outcome could also shape how other federal agencies label emerging technologies as security threats. A permanent block would keep Anthropic’s tools available to the government while negotiations continue.
For now, the Pentagon must operate without a definitive ruling on the risk label. Both sides are expected to file further briefs before the court issues a final decision.
This article was written with the assistance of AI.
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