Trump administration appeals court decision in Anthropic ruling
What's the story
The Trump administration has appealed a federal judge's ruling that temporarily halted the Pentagon's ban on Anthropic. The appeal was filed by Justice Department lawyers at the US Court of Appeals for the Ninth Circuit on Thursday. This move intensifies an ongoing battle that could redefine government relations with artificial intelligence (AI) companies.
Information
Tensions between Anthropic and Pentagon have escalated
The conflict between Anthropic and the Pentagon has been simmering for months, ever since a proposed deal for government use of Claude fell through. The breakdown was due to the company's strict rules regarding its technology.
Legal proceedings
Anthropic claims supply chain risk designation infringes on rights
Anthropic contended that the supply chain risk designation was inflicting immediate and irreparable damage as business partners reconsider their contracts and federal agencies phase out Claude. The company is contesting this in a parallel case at a Washington, D.C. court. In both cases, Anthropic claims that the Pentagon is infringing on its First Amendment rights and procurement law.
Defense argument
Defense Department insists dispute is about military's right to technology
The Defense Department maintains that the dispute is about the military's right to use technology, not free speech. The supply chain risk designation is usually reserved for foreign adversaries posing a national security threat and effectively prevents companies from using Claude in Defense Department-related work. President Trump has also ordered federal agencies to stop using Anthropic's technology, with some agencies already offboarding the tools.
Judicial impact
Pentagon blocked from labeling Anthropic supply chain risk
US District Judge Rita Lin recently blocked the Pentagon from labeling Anthropic a supply chain risk. She also blocked enforcement of President Trump's social media directive ordering federal agencies to stop using Anthropic and its chatbot, Claude. The judge criticized the broad punitive measures taken against Anthropic by the Trump administration as arbitrary and could potentially cripple Anthropic.
Official reaction
US defense undersecretary calls ruling 'disgrace'
In response to Judge Lin's ruling, US Defense Undersecretary Emil Michael, the Pentagon's chief technology officer, called it a "disgrace." He said it would limit Hegseth's "full ability to conduct military operations with the partners it chooses." However, Lin had stayed her order for a week allowing time for the Pentagon to appeal this case at Ninth Circuit Court of Appeals.