A U.S. federal judge stated that the Trump administration has not yet presented sufficient evidence to prove that Anthropic should be considered a "supply chain risk," nor is it sufficient to prohibit federal agencies from using the AI company's technology. The court will next decide whether the previous temporary injunction will remain in effect.

The dispute arose from Pentagon contract negotiations.

The dispute stems from stalled contract negotiations between Anthropic and the U.S. Department of Defense. Anthropic previously stated that it did not want its AI to be used for mass surveillance of the American public, nor for targeting or firing decisions with lethal weapons, arguing that the technology was not yet mature.

The U.S. Department of Defense maintains that private companies should not dictate how the military uses technology, stating that the tools will only be used for "legitimate" purposes. The disagreement escalated, ultimately evolving into a dispute over federal procurement and risk assessment.

Judge questions the reasons for the ban

The government also argued that Anthropic's public criticism of the Department of Defense could be grounds for restricting its involvement in federal business. U.S. District Judge Rita Lin, who presided over the case, stated during the hearing that this logic was "deeply disturbing" because it could set a precedent for the government to retaliate against contractors who disagree with the administration's position.

Another point of contention is that the Department of Defense claims Anthropic could disable or modify its AI model during combat operations. However, the judge stated that the existing materials do not prove that Anthropic could modify the model after delivery, nor is there evidence that it could set up a control mechanism similar to a "switch off".

Both lawsuits are still ongoing.

This hearing is one of two lawsuits Anthropic filed against the U.S. Department of Defense in March of this year, both challenging federal bans and "supply chain risk" claims. The other case is currently being heard in Washington.

Rita Lin temporarily halted the injunction in March. She is now assessing whether to make the temporary order permanent. If the court ultimately upholds this ruling, the legal basis for the Trump administration's restrictions on Anthropic's participation in federal procurement will be further weakened.