Judge Says Pentagon’s Anthropic Blacklist ‘Looks Like an Attempt to Cripple’ Company as She Weighs Injunction
At a March 24 hearing U.S. District Judge Rita Lin called the Pentagon’s actions against AI firm Anthropic "troubling" and said the blacklist "looks like an attempt to cripple" the company, questioning whether three steps — a Trump‑era ban, Defense Secretary Pete Hegseth’s demand that contractors cut commercial ties, and a supply‑chain‑risk designation — were narrowly tailored to national‑security concerns and noting the department could simply stop using Anthropic’s Claude if worried about chain‑of‑command integrity. Anthropic is seeking a preliminary injunction to restore the status quo as of Feb. 26 by pausing the designation and blocking enforcement, while the Pentagon contends the measures address risks such as potential future sabotage or a hidden "kill switch" and says Anthropic would otherwise have an "operational veto"; Judge Lin said she expects to rule within days.
📌 Key Facts
- At a March 24 preliminary‑injunction hearing, U.S. District Judge Rita F. Lin called the Pentagon’s actions against Anthropic “troubling,” saying they “look like an attempt to cripple Anthropic” and suggesting the company might be punished for publicly criticizing the government.
- Lin criticized three measures — the Trump‑era ban on Anthropic, Defense Secretary Pete Hegseth’s public demand that contractors cut commercial ties, and the Pentagon’s “supply‑chain‑risk” designation — as not well tailored to the stated national‑security concerns and questioned whether the government lawfully banned all agencies from using Anthropic or conditioned Pentagon business on severing ties.
- Lin suggested the Defense Department could simply stop using Anthropic’s Claude in sensitive operations rather than broadly designating the company a supply‑chain risk and cutting it out of military contracting.
- Anthropic is seeking preliminary relief to restore the Feb. 26 status quo by pausing the designation, blocking enforcement, and rolling back actions already taken; Lin said she expects to rule within a few days on whether to temporarily pause the ban.
- Government lawyers argued the actions were not retaliatory, portrayed Anthropic as a “risk” because it might update Claude in ways that could endanger national security (including alleged fears of a hidden “kill switch” or future sabotage), and said Anthropic seeks an “operational veto” over Defense Department decisions.
- Anthropic’s lawyers countered that Hegseth’s widely seen social‑media post created “profound uncertainty,” denied the company can alter or shut off Claude once deployed on government systems, and said the “supply‑chain‑risk” label appears to be the first use of that designation against a U.S. company rather than a foreign adversary.
- Government attorneys argued that Trump and Hegseth’s blacklist social‑media posts are not legally binding — an argument the judge called “pretty surprising” given those statements’ central role in the lawsuit — and DOJ counsel Eric Hamilton conceded the supply‑chain label does not legally bar contractors from using Anthropic for non‑military work and that he knew of no law allowing DoD to cut off all commercial activity with the firm.
- The Pentagon contends Anthropic controls Claude’s availability and performance in ways that could be dangerous for sensitive operations, a characterization Anthropic disputes.
📰 Source Timeline (4)
Follow how coverage of this story developed over time
March 25, 2026
12:12 AM
Judge says government's Anthropic ban looks like punishment
New information:
- At the March 24 preliminary‑injunction hearing, Judge Rita F. Lin said the government’s Anthropic ban 'looks like an attempt to cripple Anthropic' and that she was concerned the administration might be punishing the company for openly criticizing its position.
- Lin stated the Pentagon has a right to choose what AI products it uses, but questioned whether it broke the law by banning all agencies from using Anthropic and by conditioning Pentagon business on cutting ties with the company.
- Government lawyers argued in court that the action was not retaliatory and that Anthropic is a 'risk' because it could, in the future, update Claude in ways that endanger national security.
- Anthropic’s counsel told the court this is apparently the first time a 'supply chain risk' designation has been used against a U.S. company, a label normally reserved for foreign adversaries.
- Lin said she expects to rule within a few days on whether to temporarily pause the ban while the broader lawsuits proceed.
March 24, 2026
11:46 PM
Judge calls Pentagon's moves against AI firm Anthropic "troubling"
New information:
- Judge Rita Lin explicitly called the Pentagon’s actions against Anthropic 'troubling' and said they 'don't really seem to be tailored to the stated national security concern.'
- Lin suggested the Defense Department could simply stop using Claude itself instead of broadly designating Anthropic a supply‑chain risk and moving to cut it out of military contracting.
- Under questioning, DOJ attorney Eric Hamilton conceded that the supply‑chain‑risk label does not legally bar defense contractors from using Anthropic on non‑military work and said he knew of no law allowing DoD to cut off all commercial activity with Anthropic, undercutting Defense Secretary Pete Hegseth’s public threat.
- Anthropic’s lawyer Michael Mongan argued that Hegseth’s widely viewed social‑media post has created 'profound uncertainty' for the company, even if the government now says it is not enforceable, and denied that Anthropic can alter or shut off Claude once it is deployed on government systems.
- The government justified the 'supply chain risk' designation in court by claiming Anthropic’s negotiating stance created a 'risk of future sabotage,' including fears of a hidden 'kill switch,' while Lin questioned whether that amounted to punishing the firm for being 'stubborn' and 'ask[ing] annoying questions.'
9:11 PM
Judge questions Pentagon's "troubling" Anthropic actions
New information:
- At a March 24 hearing, U.S. District Judge Rita Lin called the Pentagon’s treatment of Anthropic 'troubling' and said, 'I don't know if it's murder, but it looks like an attempt to cripple Anthropic.'
- Judge Lin criticized three Trump‑era actions — Trump’s ban on Anthropic, Defense Secretary Pete Hegseth’s requirement that Pentagon contractors cut commercial ties, and the supply‑chain‑risk designation — as not well tailored to the stated national‑security concern, noting the Pentagon could simply stop using Claude if the issue were chain‑of‑command integrity.
- The Pentagon’s lawyer argued that Trump and Hegseth’s blacklist social‑media posts are not legally binding, an argument the judge said she found 'pretty surprising' because the statements are 'front and center' in the lawsuit.
- Anthropic is asking the court for preliminary relief that would effectively restore the status quo as of Feb. 26 — before the public blacklist announcements — by pausing the designation, blocking enforcement, and rolling back actions already taken.
- The Pentagon argues in filings that Anthropic is seeking an 'operational veto' over Defense Department decisions and says Anthropic has full control over Claude’s availability and performance in ways it views as dangerous in sensitive operations, a characterization the company disputes.