A federal judge has handed an early legal victory to artificial intelligence firm Anthropic in its dispute with the Pentagon.

In a ruling issued Thursday, U.S. District Judge Rita Lin determined that directives from President Donald Trump and Defense Secretary Pete Hegseth ordering agencies to immediately stop using Anthropic’s technology cannot be enforced for now.

Judge Lin wrote that the administration’s actions appeared aimed at undermining the company, stating the government was attempting to "cripple Anthropic" and "chill public debate" over concerns the company raised بشأن the military’s use of its tools.

"This appears to be classic First Amendment retaliation," the judge added.

The decision allows Anthropic’s AI systems, including its Claude platform, to remain in use across federal agencies and among private contractors working with the military while the case proceeds.

The White House and the Department of Defense did not respond to requests for comment.

An Anthropic spokesperson said the company was "pleased" with the ruling from the federal court in California, adding that its priority "remains on working productively with the government to ensure all Americans benefit from safe, reliable AI."

The lawsuit, filed earlier this month, targets the Department of Defense and several other agencies. It followed public criticism from Trump and a subsequent designation by Hegseth labeling Anthropic a "supply chain risk" — a classification rarely applied to U.S.-based companies.

Such a designation typically signals that a product or service is not secure enough for government use and has historically been reserved for firms tied to adversarial nations.

Anthropic argued in its complaint that the designation harmed its business and violated its constitutional right to free speech.

Pentagon officials have maintained that concerns about the company’s technology — widely deployed in government and military settings — intensified after Anthropic declined to accept revised contract terms, justifying the risk designation.

However, Judge Lin pointed to public remarks by Trump and Hegseth describing the company as "woke" and made up of "left-wing nut jobs," rather than citing specific security deficiencies.

"If this were merely a contracting impasse, DoW would presumably have just stopped using Claude," Judge Lin wrote, referencing the Department of War, an alternate name for the Department of Defense. "The challenged actions, however, far exceed the scope of what could reasonably address such a national security interest."

The dispute follows months of negotiations between Anthropic and the Pentagon over proposed changes tied to an expansion of a $200 million contract.

Defense officials sought language allowing the use of Anthropic’s technology for "any lawful use." The company and its chief executive, Dario Amodei, objected, warning the terms could enable mass surveillance of Americans or the deployment of fully autonomous weapons.

Tensions escalated into public view in February when Hegseth set a deadline for Anthropic to accept the revised terms. The company refused, setting the stage for the ongoing legal battle.