US Court Queries Trump’s Anthropic AI Ban

Thu Mar 26 2026
Eric Whitman (448 articles)
US Court Queries Trump’s Anthropic AI Ban

A judge expressed doubt regarding the reasoning provided by the Donald Trump administration for prohibiting the US government from utilizing artificial intelligence technology developed by Anthropic PBC, a decision that the creator of the Claude chatbot asserts could result in billions in lost revenue. During a hearing Tuesday in San Francisco, United States District Judge Rita F Lin expressed that it was “troubling” for the Defence Department to have designated Anthropic as a supply-chain risk, a label typically reserved for US adversaries. Lin remarked that the government’s decision seems not to be “tailored to the stated national security concern.”

“Instead, the ban that followed the Pentagon’s dispute with the company over AI safety concerns looks like an attempt to cripple Anthropic,” she said. The judge expressed her concern regarding the possibility that the government may be penalizing Anthropic for its public statements about the conflict. Last month, Anthropic initiated a lawsuit to prevent the Pentagon’s declaration, intensifying a significant conflict regarding the protections surrounding AI technology utilized by the military. The startup sought guarantees that its AI would not be utilized for mass surveillance of Americans or for the deployment of autonomous weapons, whereas the government invoked national security concerns to argue against any limitations.

Anthropic requested that the judge grant a preliminary injunction to prevent the government’s ban from remaining in effect during the ongoing legal battle. Lin did not issue a ruling on that request; however, she indicated that a decision would be forthcoming in the days ahead. Anthropic is seeking a judicial order to eliminate the supply-chain risk designation and to compel US agencies to rescind related directives. The company asserts that it is being excluded for opposing the administration and contends that the legal principles involved impact every federal contractor whose opinions are unwelcome by the government.

The Trump administration has pledged to engage in a legal battle aimed at removing Anthropic from all US government agencies. During the hearing, a lawyer for the federal government stated that trust is a key component in any relationship the military has with companies providing it with services, and that Anthropic undermined that trust during contract negotiations by attempting to dictate Pentagon policies on the use of AI technology. The attorney contended that the government is apprehensive regarding the potential for “future sabotage” from Anthropic, particularly in relation to modifications in the AI software acquired from the firm.

Eric Whitman

Eric Whitman

Eric Whitman is our Senior Correspondent who has been reporting on Stock Market for last 5+ years. He handles news for UK and Europe. He is based in London