US court suspends Pentagon sanctions against Anthropic

The dispute stems from alleged security concerns over Anthropic's AI model Claude Mythos. The court's order to drop the Trump administration's "supply chain risk" tag will take effect in seven days.

Artificial intelligence company Anthropic, on Thursday, won temporary legal relief in its dispute with the US Pentagon over military applications of its AI models.

A San Francisco judge issued a temporary injunction blocking the Trump administration's move to label Anthropic as a "supply chain risk to national security." This order will take effect in seven days, giving the government time to appeal.

How did Anthropic respond to the ruling?

Judge Rita Lin said the government could choose not to use Anthropic products, but seemed to be punishing it for publicly criticizing the administration. That would violate free speech rights enshrined in the US constitution, she said, adding that the designation was likely unlawful and arbitrary.

"We're grateful to the court for moving swiftly, and pleased they agree Anthropic is likely to succeed on the merits," an Anthropic spokesperson said.

"While this case was necessary to protect Anthropic, our customers, and our partners, our focus remains on working productively with the government to ensure all Americans benefit from safe, reliable AI."

What is the dispute between Anthropic and the Pentagon about?

The legal tussle stems from a disagreement between the firm and the Trump administration, over the safety restrictions embedded in its AI model, Claude, which limit its use in war-gaming scenarios.

Anthropic eventually refused to allow the department to use its AI technology for mass surveillance of US citizens or in autonomous weapons, despite warnings.

It triggered US President Donald Trump to label Anthropic a "supply chain risk" and order federal agencies to halt all contracts with the firm. The designation also means that other defense vendors and contractors have to certify that they do not use Anthropic's models in their work for the government.

"We do not believe this action is legally sound, and we see no choice but to challenge it in court," Amodei had previously said, responding to the effective sanction.

Defense Secretary Pete Hegseth was infuriated by the company's non-cooperation. In a post on X, he had said the company had "delivered a master class in arrogance and betrayal as well as a textbook case of how not to do business with the United States Government or the Pentagon."

Before the disagreement, Anthropic had been the only AI firm cleared for confidential military use. Following the dispute, ChatGPT-maker OpenAI signed an agreement with the defense department. 

Edited by: Alex Berry