Judge Freezes Anthropic Ban, Slams Trump Administration for ‘First Amendment Retaliation’

A San Francisco judge just threw a massive wrench into President Donald Trump’s plan to blacklist AI powerhouse Anthropic, ruling that the government’s attempt to “cripple” the company looked more like political revenge than national security.

On Thursday, US District Judge Rita Lin granted Anthropic a preliminary injunction, temporarily freezing a series of government actions that had effectively barred federal agencies and military contractors from using the company’s Claude AI models. The ruling follows a high-stakes standoff over how much control the Pentagon should have over artificial intelligence.

In a strong-worded 43-page order, Judge Lin didn’t mince words about the administration’s tactics. She suggested the government was punishing the startup simply for standing its ground during contract negotiations.

“Punishing Anthropic for bringing public scrutiny to the government’s contracting position is classic illegal First Amendment retaliation,” Lin wrote in the order.

The judge was particularly critical of the government’s decision to label Anthropic a “supply chain risk,” a designation usually reserved for foreign adversaries. She pushed back against the idea that a domestic company could be treated as a threat just for having a policy disagreement.

“Nothing in the governing statute supports the Orwellian notion that an American company may be branded a potential adversary and saboteur of the U.S. for expressing disagreement with the government,” Lin stated.

The fight over AI guardrails

The legal battle began after negotiations over a $200 million contract soured last year. Anthropic wanted guarantees that its technology wouldn’t be used for mass domestic surveillance or fully autonomous weapons. The Department of Defense (which the administration has begun calling the Department of War) argued it needed unrestricted access for all “lawful purposes.”

When talks stalled, the administration’s response was swift. President Trump took to Truth Social to order agencies to “immediately cease” using Anthropic, writing: “WE will decide the fate of our Country — NOT some out-of-control, Radical Left AI company run by people who have no idea what the real World is all about.”

Defense Secretary Pete Hegseth followed up by labeling the company a security risk, a move Anthropic argued caused “reputational harm” and cost them hundreds of millions in potential business.

A symbolic and financial boost

While the ruling is a major win for Anthropic, it’s not a final victory. The judge put the order on hold for seven days to allow the government time to appeal. She also clarified that while the government can’t use the “supply chain risk” label to ban the company, it isn’t strictly forced to buy Anthropic’s products.

In a statement following the ruling, Anthropic expressed relief: “While this case was necessary to protect Anthropic, our customers, and our partners, our focus remains on working productively with the government to ensure all Americans benefit from safe, reliable AI,” the company said per Bloomberg.

On the other side, the administration remains defiant. Emil Michael, the under secretary of defense for research and engineering, called the decision “a disgrace” on X, claiming “there are dozens of factual errors” in the judgment.

The government has until April 6 to provide a report detailing how it has complied with the judge’s ruling. Meanwhile, Anthropic is fighting a second, parallel battle in a DC appeals court to fully overturn the Pentagon’s determination.

Read more: US Sen. Elizabeth Warren also recently called the Anthropic blacklist “retaliation” during a heated Pentagon hearing.

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