Judge says Trump admin still lacks evidence for Anthropic ‘supply chain risk’ label

A U.S. judge has questioned the Trump administration's lack of evidence for labeling Anthropic a 'supply chain risk,' which would ban the government from using its AI technology. The judge expressed concern that the ban might be retaliatory against the company for its public criticism of the Department of Defense.
Why it matters
This case sets a critical legal precedent regarding the government's power to blacklist private AI contractors and the limits of executive authority over tech companies.
During a Thursday hearing, a judge said the Trump administration hasn’t presented enough evidence to justify labeling Anthropic a supply chain risk and banning the federal government from using the company’s technology.
Bloomberg and Axios were among the first to report the news.
The dispute stems from stalled contract negotiations between Anthropic and the Department of Defense. Anthropic said it didn’t want its AI used for mass surveillance of Americans or for targeting or firing decisions involving lethal weapons, arguing the technology wasn’t ready. The Pentagon countered that a private company shouldn’t dictate how the military uses technologies, and said it would use the tools in “lawful” ways.
The government has also argued that Anthropic’s public criticism of the DoD justifies the ban — logic that U.S. District Judge Rita Lin called “really troubling,” warning it could set a precedent of retaliating against federal contractors who disagree with the administration.
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