An anonymous reader quotes a report from CNN: A federal judge in California has indefinitely blocked the Pentagon's effort to "punish" Anthropic by labeling it a supply chain risk and attempting to sever government ties with the AI company, ruling that those measures ran roughshod over its constitutional rights. "Nothing in the governing statute supports the Orwellian notion that an American company may be branded a potential adversary and saboteur of the U.S. for expressing disagreement with the government," US District Judge Rita Lin wrote in a stinging 43-page ruling.

Lin, an appointee of former President Joe Biden, said she would delay implementation of her ruling for one week to allow the government to appeal. But in her ruling, she made it clear she disapproved of the government's actions, which she said violated the company's First Amendment and due process rights. [...] "These broad measures do not appear to be directed at the government's stated national security interests," she wrote. "The Department of War's records show that it designated Anthropic as a supply chain risk because of its 'hostile manner through the press.'" "Punishing Anthropic for bringing public scrutiny to the government's contracting position is classic illegal First Amendment retaliation," she added. "We're grateful to the court for moving swiftly, and pleased they agree Anthropic is likely to succeed on the merits," an Anthropic spokesperson said after the ruling. "While this case was necessary to protect Anthropic, our customers, and our partners, our focus remains on working productively with the government to ensure all Americans benefit from safe, reliable AI."

Read more of this story at Slashdot.