A federal judge has blocked an order by President Donald Trump directing all U.S. government agencies to cut ties with artificial intelligence firm Anthropic, marking a major legal setback for the administration’s push to sideline the company over a dispute with the Pentagon.
U.S. District Judge Rita Lin, an appointee of former President Joe Biden, ruled Thursday, March 27, that the sweeping directive likely violates the First Amendment.
Lin said the order — which required every federal agency to cease using Anthropic’s technology — could not stand under constitutional protections, even as she paused her ruling for one week to allow the Justice Department time to appeal.
“For the foregoing reasons, Anthropic’s Motion for Preliminary Injunction (Dkt. No. 6) is GRANTED as modified. A separate order concerning Anthropic’s request for a Section 705 stay and preliminary injunctive relief will issue, but is hereby stayed for seven days,” part of the ruling reads.
Court draws line on scope of federal ban
In her order, the judge made clear that the ruling does not force the military or government agencies to use Anthropic’s systems.
“For example, this Order does not require the Department of War to use Anthropic’s products or services,” Lin wrote, adding that agencies remain free to switch providers as long as they comply with existing laws and regulations.
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However, she found that a blanket prohibition on using the company’s services across government raised constitutional concerns.
“At bottom, Anthropic has shown that these broad punitive measures were likely unlawful and that it is suffering irreparable harm from them. Numerous amici have also described wideranging harm to the public interest, including the chilling of open discussion about important topics in AI safety. The motion for a preliminary injunction is granted.”
The court challenge stems from a directive issued last month after Anthropic refused the Pentagon’s demands to remove safety restrictions from its AI system, Claude, and to allow unrestricted military use.
In a statement posted on Truth Social last month, Trump accused the company of attempting to interfere with U.S. military operations.
Trump ordered all federal agencies to immediately stop using Anthropic’s technology, with a six-month phase-out period for departments already relying on its systems.
“The United States of America will never allow a radical left, woke company to dictate how our great military fights and wins wars,” he said.
He added, “We don’t need it, we don’t want it, and will not do business with them again,” warning of “major civil and criminal consequences” if the company failed to cooperate.
Anthropic refused Pentagon demands
The standoff began after Anthropic declined the Department of War’s request to remove safeguards from its AI tools.
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Chief executive Dario Amodei, in a statement last month, said the company could not agree to conditions that would allow unrestricted use of its systems.
“Regardless, these threats do not change our position: we cannot in good conscience accede to their request,” Amodei said.
The Pentagon had argued that AI contractors must permit “any lawful use” of their technology, including military applications.
Anthropic has maintained that it supports U.S. national security but opposes certain uses of artificial intelligence it considers high-risk.
The company says its systems are used across defense and intelligence operations, including for analysis, operational planning, and cyber-related work.
It also pointed to steps taken to limit access to adversaries, including cutting off services to entities linked to China and supporting export controls on advanced computing technologies.
Judge Lin’s temporary pause on her ruling gives the Justice Department a narrow window to challenge the decision in a higher court.
