U.S. District Judge Rita Lin found that the Pentagon’s designation of Anthropic as a national security supply-chain risk violated the First and Fifth Amendments, ordering the government to rescind all directives against the company. The 59-page ruling, issued Thursday in the Northern District of California, marks the first time a U.S. company has been publicly designated under that statute—and the first time such a designation has been struck down in court.
The case centered on the Defense Department’s authority to designate companies as supply-chain risks based on unproven assertions about their technology. Anthropic challenged the designation, arguing it was retaliation for the company’s refusal to permit domestic surveillance and autonomous weapons use.
The ruling could have implications for other AI companies facing similar designations. A second case remains pending in Washington D.C., where an appeals court ruled the other way in April, creating a circuit split that may ultimately require Supreme Court resolution.
Anthropic welcomed the decision, stating it “vindicates our position that the government cannot designate companies as risks without due process and evidence.”