US judge blocks Pentagon's blacklisting of AI tech company

A US judge on Aug. 27, 2026 blocks the Pentagon’s blacklisting of Anthropic, the latest turn in the Claude maker’s high-stakes fight with the military over AI safety on the battlefield. Anthropic’s lawsuit in California federal court alleges that Defense Secretary Pete Hegseth overstepped his authority when he designated Anthropic a national security supply-chain risk, a label the government can apply to companies that expose military systems to potential infiltration or sabotage by adversaries. Hegseth’s unprecedented move, which followed Anthropic's refusal to allow the military to use AI chatbot Claude for US surveillance or autonomous weapons, blocked Anthropic from certain military contracts. Anthropic executives have said it could cost the company billions of dollars in lost business and reputational harm. US District Judge Rita Lin, an appointee of former Democratic president Joe Biden, made the ruling in a 59-page order where she found that the Pentagon's decision was 'illegal and baseless.'

VIDEO BY REUTERS / DOORDARSHAN

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