Judge Questions Evidence Behind Anthropic ‘Supply-Chain Risk’ Label

During a Thursday hearing, U.S. District Judge Rita Lin said the Trump administration has not presented enough evidence to justify labeling Anthropic a supply-chain risk. The designation is tied to a ban on the federal government using Anthropic’s AI technology. Her comments cast doubt on the government’s position as she considers whether to make an earlier temporary block on the ban permanent.

The dispute stems from stalled contract negotiations between Anthropic and the Department of Defense. Anthropic said it did not want its AI used for mass surveillance of Americans or for targeting or firing decisions involving lethal weapons, arguing the technology was not ready. The Pentagon countered that a private company should not dictate how the military uses technologies and said it would use the tools in “lawful” ways.

The government has argued that Anthropic’s public criticism of the DOD helps justify the ban. Lin called that logic “really troubling,” warning it could set a precedent of retaliating against federal contractors that disagree with the administration. The DOD also claimed Anthropic could potentially disable or alter AI models during warfighting operations, but Lin said she saw no proof the company could alter a delivered model or “flip some kind of kill switch.”

The hearing is part of one of two lawsuits Anthropic filed against the DOD in March challenging the ban and risk designation. The other case is being heard in Washington. Lin temporarily blocked the ban in March and is now weighing whether to make that order permanent, a decision that could shape how evidence is tested when government agencies restrict AI vendors.