Washington – A federal court has ruled that the Pentagon cannot forgo standard government contracting procedure and blacklist AI company Anthropic without due process over a dispute about the large language model provider’s product. The U.S. District Court for the Northern District of California has partially granted Anthropic’s motion for summary judgment on several points, agreeing with Anthropic that the Pentagon’s actions violated the First Amendment because it unlawfully retaliated “against Anthropic for constitutionally protected expressive activities.” The ruling also noted that Sec. Pete Hegseth designating Anthropic as a supply chain risk was “arbitrary and capricious.”
The Computer & Communications Industry Association had joined with ITI, SIIA and TechNet in amicus briefs filed in California and Washington DC, pointing out the dangers to the U.S. economy and all companies if a government agency is able to use a tool normally reserved for foreign adversaries as potential retaliation following a dispute. In late March, a federal judge in California cited the tech industry’s amicus brief in her ruling granting Anthropic a preliminary injunction.
The following can be attributed to CCIA President & CEO Matt Schruers:
“We are encouraged by this outcome, as this case matters to anyone doing business with the U.S. government. By bypassing standard procurement to target Anthropic in this fashion, the Pentagon’s action deeply concerned any company that has contracts with the government.
“Designating a company as a supply chain risk is a tool normally reserved for foreign adversaries that must be used with discretion and proper procedure – not as punishment for a difference of views. Allowing the government to unfairly penalize firms without proper process undermines U.S. innovation and competitiveness, especially as American businesses face intense rivalry from overseas AI competitors.”
