US Judge Rules Pentagon’s Anthropic Designation Was Unlawful

A US federal judge has ruled against the Department of Defense in its dispute with artificial intelligence company Anthropic, finding that the Pentagon acted unlawfully when it designated the company a supply-chain risk.

Judge Rita Lin said the government could not rely on national security concerns to punish a company over disagreements about how its technology should be used, describing the designation as “illegal and baseless”.

The ruling follows Anthropic’s refusal to allow the US military to use its AI models for purposes including surveillance and autonomous weapons. The company had argued that Defence Secretary Pete Hegseth exceeded his authority in imposing the designation.

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Judge Lin said invoking national security “is not a blank check to punish and retaliate against government critics”.

Anthropic welcomed the decision. A company spokesperson said it remained focused on “working productively with the government to harness AI for our national security so all Americans benefit from this technology”.

The BBC said it had contacted the Pentagon and the White House for comment.

Dispute Over Military Use Of AI

The Pentagon designated Anthropic as a supply-chain risk in February, a classification generally used for companies based in countries considered threats to US national security.

The designation was notable because Anthropic was the first American company to be publicly classified in this way.

The dispute began after Anthropic declined to accept terms that would have allowed its models to be used by the military in areas the company considered unsafe or inconsistent with its stated restrictions.

Anthropic argued in its lawsuit that its models were not sufficiently reliable for safe deployment in weapons systems. It also opposed their use for domestic surveillance, saying such applications could violate rights.

The Pentagon argued that private companies should not be able to place restrictions on military operations. It also said Anthropic’s refusal to accept revised contract terms raised concerns about how the company might use its technology.

Judge Says Government Actions Threatened Free Speech

Anthropic alleged that the government’s actions had harmed its business and violated its First Amendment rights.

In an earlier stage of the case, Judge Lin said the government appeared to be trying to “cripple” Anthropic and “chill public debate” over the military use of AI.

“This appears to be classic First Amendment retaliation,” she said at the time.

The White House had previously criticised Anthropic, describing it as “a radical left, woke company” that was attempting to control military activity. It argued that the military was bound by the US Constitution rather than “any woke AI company’s terms of service”.

In the latest ruling, Judge Lin said the Defence Department had also acted unlawfully by directing companies that do business with the US military to boycott Anthropic.

Anthropic had described the government's actions in its lawsuit as “unprecedented and unlawful”.

The ruling represents a significant legal challenge to the Pentagon’s attempt to restrict its dealings with an American AI company following a disagreement over the acceptable military uses of artificial intelligence.