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Anthropic Wins Court Order Pausing Trump Ban on AI Tool

Federal judge halts Pentagon's ban on Anthropic's AI, citing likely First Amendment violations and procedural errors in designating the company a national security risk.

  • On Thursday, U.S. District Judge Rita Lin granted a preliminary injunction blocking the Department of Defense and President Donald Trump from enforcing a 'supply chain risk' designation against Anthropic, halting the federal directive ordering agencies to cease using the company's technology.
  • A failed $200 million contract negotiation led to the blacklisting, as the Pentagon sought unrestricted AI use while Anthropic demanded guarantees against autonomous weapons and mass surveillance. Defense Secretary Pete Hegseth labeled the company a 'supply chain risk' in February.
  • Judge Lin found the administration's actions appeared to 'punish' the company for public criticism rather than addressing national security, characterizing the government's measures as 'classic illegal First Amendment retaliation' in her 43-page ruling.
  • The injunction pauses enforcement of the designation and federal agency cut-offs, though Lin stayed the order for seven days to allow the administration an opportunity to appeal, restoring the status quo during ongoing litigation.
  • This case serves as a critical legal test regarding whether the executive branch can use national security designations to exclude domestic tech firms, with the outcome likely influencing future defense procurement and AI governance standards.
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Bloomberg broke the news in United States on Thursday, March 26, 2026.
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