In a hearing on Thursday, a judge determined that the Trump administration has failed to provide sufficient evidence to classify Anthropic as a supply chain risk or to prohibit federal agencies from using its technology. Bloomberg and Axios were among the first outlets to cover this development.

The legal conflict stems from stalled negotiations between Anthropic and the Department of Defense over a contract. Anthropic stated it did not want its AI employed for mass surveillance of Americans or for decisions related to targeting or deploying lethal weapons, arguing the technology was not yet mature enough for such uses. The Pentagon countered that a private company should not dictate how the military applies technology, asserting that it would use the tools in “lawful” ways.

The government also argued that Anthropic’s public criticism of the DoD justified the ban. U.S. District Judge Rita Lin called this reasoning “really troubling,” warning it could establish a precedent of punishing federal contractors who disagree with the administration. Additionally, the DoD claimed that Anthropic might disable or alter its AI models during combat operations—a claim experts say lacks evidence. Lin agreed, stating she saw no proof that Anthropic could modify a delivered model or “flip some kind of kill switch.”

Thursday’s hearing was part of one of two lawsuits Anthropic filed against the DoD in March, challenging the ban and the risk designation. The other case is being heard in Washington. Lin, who temporarily blocked the ban in March, is now considering whether to make that order permanent.