A federal judge has overturned the Pentagon's designation of Anthropic as a supply-chain risk, concluding it violated the AI company's constitutional rights. This significant ruling is a major legal win for Anthropic in its dispute with the government over the military's use of its AI models. U.S. District Judge Rita Lin found the Pentagon's action unlawful, stating that national security claims cannot be used to punish critics. She highlighted that the Pentagon continued working with Anthropic after the designation, contradicting fears of sabotage. Anthropic expressed satisfaction with the ruling, emphasizing their commitment to collaborating with the government responsibly. The conflict began when the Defense Department wanted to use Anthropic's Claude AI for sensitive applications. Anthropic, however, restricted its use for mass surveillance and fully autonomous weapons. The Pentagon responded by labeling Anthropic a national security and supply-chain risk, prompting Anthropic to file a lawsuit. The government is anticipated to appeal this decision. Anthropic is also involved in a separate legal challenge against another Pentagon designation in a different court.