Trump administration illegally retaliated against Anthropic, judge says - BBC News

The AI startup has been at loggerheads with the Pentagon over the use of AI by the US military.

Image source, AFP via Getty ImagesByOsmond ChiaBusiness reporterPublished28 August 2026, 03:57 BSTUpdated 04:41 BSTA judge has ruled the US Department of Defense acted unlawfully when it designated artificial intelligence (AI) startup Anthropic a supply chain risk, calling the move "illegal and baseless".

The company argued in the lawsuit that Defense Secretary Pete Hegseth overstepped his authority with the new designation. It followed Anthropic's refusal to allow the military to use its AI models for tasks including surveillance or autonomous weapons.

US District Judge Rita Lin said in the ruling that citing national security was "not a blank check to punish and retaliate against government critics".

Anthropic welcomed the ruling. The BBC has contacted the Pentagon and the White House for comment.

Anthropic was focused on "working productively with the government to harness AI for our national security so all Americans benefit from this technology", a spokesperson told the BBC.