A US district judge has ruled that the Trump administration must lift its prohibition on the use of Anthropic PBC's artificial intelligence technology across federal agencies. The decision, delivered late Thursday by District Judge Rita F. Lin in San Francisco, concluded that the government failed to provide adequate justification for the ban, marking a significant legal setback for the administration in its dispute with the AI company.

Judge Lin's ruling came in response to a challenge filed by Anthropic against the US Department of Defense, which had imposed the restriction earlier this year. In her written opinion, the judge acknowledged that the government "deserves deference on significant matters such as national security," but she sharply criticized the rationale behind the ban. She noted that the administration's actions and statements suggested the measure was driven by retaliation for Anthropic's previous criticism of government "arrogance," rather than any clearly articulated concerns about the company's models. The judge described the move as an effort to "make an example" of the firm, rather than a decision grounded in identifiable risks.

The ruling represents a pivotal victory for the AI giant, which has been locked in a contentious standoff with US authorities since negotiations with the Pentagon over military use of its technology collapsed earlier this year. Anthropic welcomed the court's decision to declare the supply chain risk designation unlawful, saying it reaffirmed the importance of due process in such matters. In a statement, the company said: "We will continue to focus on productive collaboration with the government, leveraging AI technology to safeguard national security and deliver benefits for all Americans."