US court voids Pentagon's supply-chain designation of Anthropic

In a 59-page order issued on 28 August 2026, Judge Rita F. Lin ruled that the government's action designating Anthropic a national-security supply-chain risk was unlawful and arbitrary. The court said the statute targets sabotage or subversion, not an open disagreement over contract terms, and ordered the actions rescinded.

The ruling sets an important limit on the use of national-security procurement powers against a domestic AI supplier. Acceptable-use restrictions can become questions of constitutional law, administrative law and contractor compliance.

Contractors should monitor implementation and any appeal. The government has not been forced to buy Anthropic's services, and not all related litigation has concluded.