Investing.com– A U.S. judge on Thursday temporarily blocked the Pentagon from blacklisting Anthropic, in a setback for the administration of Donald Trump amid a high-stakes dispute over the military use of artificial intelligence.

U.S. District Judge Rita Lin ruled that the government could not immediately enforce its designation of Anthropic as a national security “supply-chain risk,” a label that would restrict the company from federal contracts.

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The judge found the administration’s actions may have been aimed at punishing the company for its public stance on AI safety, rather than addressing genuine national security concerns.

Anthropic has argued that the designation violated its constitutional rights, including free speech and due process, and said it was not given an opportunity to challenge the decision.

The Pentagon has defended the move as lawful, saying it was necessary to protect military systems from potential risks.

The dispute stems from Anthropic’s refusal to allow its AI models to be used for autonomous weapons or domestic surveillance.

The ruling, which will take effect after a short delay to allow for appeal, marks an early victory for the company, though the broader case remains ongoing.