Amazon-backed (AMZN) Anthropic won a court challenge against the US Department of Defense after a federal judge ruled that the government's designation of the AI company as a supply-chain risk was unlawful, Bloomberg reported Friday.

According to the report, US District Judge Rita Lin said the government failed to justify the designation, finding it was retaliatory rather than based on an articulable national-security concern.

Anthropic welcomed the ruling, saying it remains focused on working with the government to harness AI for national security, Bloomberg reported.

The ruling requires the government to lift the designation but does not require the Defense Department to use Anthropic's products or prevent it from switching to other AI providers through lawful means, Bloomberg added.

Anthropic did not immediately respond to MT Newswires' requests for comment.

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