US judge rules Pentagon's 'supply chain risk' label on Anthropic unlawful

A federal judge in the Northern District of California ruled that the Department of War's designation of Anthropic as a supply chain risk was unlawful retaliation under the First Amendment and lacked due process, and ordered it removed. A separate Anthropic case over a second designation remained before a Washington, DC court.

What it means for business: contractors using AI in defence work face a shifting legal picture; check contract terms on model use restrictions.