A federal judge has temporarily blocked US government actions against Amazon-backed (AMZN) Anthropic, in a case involving the Pentagon and directives from President Donald Trump, news outlets reported Thursday.
US District Judge Rita Lin ruled that the government cannot, for now, label Anthropic a supply chain risk or enforce orders requiring agencies to stop using its AI tools, including Claude, according to news reports. Lin added that the measures appeared arbitrary and could "cripple" the artificial intelligence firm.
The dispute stems from tensions between Anthropic and the US Department of Defense over contract terms and the company's stance against use of its AI in autonomous weapons or surveillance of Americans, according to the reports.
The ruling allows Anthropic's tools to continue to be used by government agencies and contractors while the case proceeds, the reports said.
Anthropic told the Associated Press that it was pleased with the decision and will continue to work with the Trump administration.
Anthropic and Pentagon didn't immediately respond to MT Newswires' requests for comment.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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