The Justice Department formally appealed a federal judge's decision blocking the Trump administration's ban on Anthropic, moving the high-stakes dispute to the Ninth Circuit. The appeal signals the administration's determination to enforce restrictions on the company's access to government systems.
U.S. District Judge Rita Lin had issued a preliminary injunction blocking the Pentagon's designation of Anthropic as a supply chain risk. Punishing Anthropic for bringing public scrutiny to the government's contracting position is classic illegal First Amendment retaliation, Lin wrote.
"Punishing Anthropic for bringing public scrutiny to the government's contracting position is classic illegal First Amendment retaliation."
The dispute emerged from collapsed Pentagon contract negotiations. Anthropic refused terms that would allow deploying Claude in autonomous weapons or mass surveillance. Rather than renegotiate, Trump publicly called Anthropic a radical left, woke company, while Defense Secretary Pete Hegseth invoked rarely used military authority to label it a national security risk.
Judge Lin identified three legal problems: the Pentagon lacked statutory authority, violated due process by providing no advance notice, and the decision was arbitrary and capricious. Evidence showed Pentagon officials were very close on terms just hours before announcing the ban.
The Ninth Circuit set an April 30 deadline for the DOJ's opening brief. Anthropic remains able to continue federal contracts while litigation proceeds. The case will shape how courts evaluate future conflicts between AI companies and federal authorities.