Trump Tried To Crush Anthropic’s Federal Contracts — But A Judge Just Blocked Everything
Anthropic, creator of the Claude chatbot, was the only AI company cleared for the Defense Department’s classified networks. But heated negotiations erupted when Anthropic demanded guarantees against autonomous weapons and mass surveillance use.
In late February, Defense Secretary Pete Hegseth labeled Anthropic a “supply chain risk to national security.” President Trump then ordered all federal agencies — including Treasury and State — to cease using Anthropic’s AI technology.
Just hours after Hegseth’s announcement, OpenAI CEO Sam Altman revealed his company had secured an agreement with the Pentagon to provide AI services in classified settings — a swift and calculated move.
Anthropic struck back hard — filing 2 lawsuits, one in Northern California and another in Washington D.C., calling the government’s actions an “unlawful campaign of retaliation” born from months of heated contract disputes.
Federal Judge Rita Lin ruled the designation was “likely contrary to law and arbitrary and capricious.” She stated Anthropic received no meaningful notice or chance to object before being publicly blacklisted from all federal work.
The court’s order restores the status quo, blocking all agencies from cutting ties with Anthropic. Judge Lin paused the order for 1 week, giving the Trump administration time to file an appeal against the ruling.
