In a significant legal victory for the AI sector, a federal judge has halted the Trump administration's attempt to designate Anthropic as a national security risk and sever its government contracts. Judge Rita F. Lin of the Northern District of California issued a preliminary injunction on Thursday, ordering the administration to rescind its "supply chain risk" label against the company and pause its directive for agencies to cut ties.

The dispute originated last month when Anthropic, known for its constitutional AI approach, sought to enforce ethical use clauses in its government contracts. These clauses reportedly prohibited the application of its models in autonomous weaponry or mass surveillance programs. The Defense Department rejected these conditions, subsequently applying the "supply chain risk" designation—a move typically targeting foreign entities—and triggering a presidential order to terminate contracts.

Judge Lin, in her remarks from the bench, suggested the government's actions appeared designed "to cripple Anthropic" and likely violated the company's First Amendment protections. The ruling represents a sharp judicial check on administrative power over technology contractors.

Anthropic CEO Dario Amodei had previously condemned the Pentagon's steps as "retaliatory and punitive," while White House officials had publicly criticized the company's policies. Following the decision, Anthropic stated it was "grateful to the court for moving swiftly" and reiterated its goal of productive government collaboration on safe AI.

The White House did not immediately respond to a request for comment on the injunction.

Source: TechCrunch