A federal court in San Francisco has ruled that the Pentagon unlawfully classified Anthropic as a supply chain risk, according to The Decoder, which cites CNBC. The court found that the Department of Defense violated the First Amendment by blacklisting Anthropic in retaliation for the company’s public criticism of government AI policy. The dispute traces back to March, when the government classified Anthropic as a supply chain risk after negotiations over military use of Claude AI models fell apart, The Decoder reports. According to the same account, Anthropic wanted guarantees that its technology would not be used for autonomous weapons or mass surveillance, while the Pentagon sought unrestricted access. The ruling does not appear to fully clear Anthropic’s government status. The Decoder reports that Anthropic filed lawsuits in both San Francisco and Washington, and that the Washington case remains pending. Because of that, the designation formally remains in place even after the San Francisco ruling. The immediate significance is legal and commercial rather than operationally settled. The court’s finding, as reported, is a direct rebuke of the government’s stated basis for labeling a major AI developer as a supply chain risk. But the pending Washington case means the company has not yet fully escaped the consequences of the designation. The Decoder frames the ruling as important ahead of Anthropic’s planned IPO this fall. That timing matters because a federal blacklist can create uncertainty for customers, partners and investors, especially as government agencies increase their use of artificial intelligence systems. Who benefits: Anthropic benefits from a favorable ruling that challenges the legality of the Pentagon’s action. Other AI vendors may also benefit if the decision discourages punitive procurement designations tied to public policy positions. Who's exposed: The Department of Defense is exposed to further legal scrutiny over how it classifies AI suppliers as supply chain risks. Anthropic remains exposed while the Washington case is pending and the designation formally remains in place.