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Anthropic has won an early legal victory in its fight with the Trump administration after a federal judge blocked a ban on government use of the company’s artificial intelligence tools. The order keeps Anthropic products, including Claude, available to US agencies and contractors for now while the case continues in court. The dispute began after Anthropic resisted broader Pentagon contract terms that tied the use of its AI systems to military applications.
US District Judge Rita F. Lin issued a preliminary injunction on Thursday that stops the administration from enforcing its plan to cut ties with Anthropic. However, she paused the order for seven days to give the government time to appeal. For now, the ruling grants Anthropic temporary relief in a case that could shape how the government regulates private AI providers.
In her written order, Lin questioned the basis for the administration’s move. She said the action did not appear aimed at national security concerns. Instead, she wrote that it appeared designed to punish the company. The judge said this looked like “classic illegal First Amendment retaliation” after Anthropic raised concerns about how its technology could be used.
Anthropic had argued that the government’s move could cost it billions of dollars in lost revenue. The company also said the case goes beyond a single contract dispute and touches on whether the government can punish a contractor for views it does not like. As a result, the court’s early order gives Anthropic room to continue serving public-sector customers while the case proceeds.
The conflict grew out of talks between Anthropic and the Defense Department over contract terms. The Pentagon wanted the agreement to allow the use of Anthropic’s tools for any lawful purpose. Anthropic, on the other hand, wanted safeguards to prevent use tied to mass surveillance of Americans or fully autonomous weapons. This disagreement later moved into court.
Earlier this month, Anthropic sued after the Defense Department declared the company a threat to the US supply chain. According to the company, this label was unfair and went far beyond a normal contract disagreement. Anthropic said it was being shut out of government work for standing by its restrictions on AI use.
Government lawyers told the court that trust is central in military relationships with private suppliers. They argued that Anthropic damaged trust during negotiations by trying to shape Pentagon policy. They also raised concerns about potential future sabotage through changes to the government's software. Anthropic rejected this claim, saying it cannot secretly alter or shut down a model once the military is using it.
Lin also challenged the sabotage argument in her ruling. She said the Justice Department had no legitimate basis to conclude that Anthropic’s position on AI restrictions meant it could become a "saboteur." In addition, Anthropic’s lawyers said the Pentagon can review any AI model before deployment, which weakens the argument that the company could quietly interfere later.
Anthropic welcomed the ruling and said it remains focused on working productively with the government so Americans can benefit from safe, reliable AI. Meanwhile, the Trump administration signaled that the fight is far from over. Emil Michael, the under secretary of defense for research and engineering, criticized the decision and said it contained “dozens of factual errors.”
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