Regulatory framework for sanctions
The effectiveness of this sanction, which falls under the federal public procurement code, is still the subject of debate, with some legal experts arguing that the regulatory texts necessary for its implementation are still lacking. On March 26, in a parallel challenge, Anthropic had won a first victory against a similar sanction, this time under the authority of the military code. In this case, a judge in San Francisco suspended the directive of Defense Minister Pete Hegseth, who had designated Anthropic as a “risk” for classified Pentagon operations.
The California judge, believing that these sanctions likely violated Anthropic’s freedom of speech, also suspended a directive from Donald Trump ordering all federal agencies to stop using their technologies. Consequently, the access platform to federal agencies’ AI, USAi.gov, restored access to Anthropic’s models on April 3.
The Pentagon informed Anthropic that it would continue to use its models, the only ones authorized to date for classified information of the U.S. military, until at least September 3, 2026. At a time when Anthropic was designated a risk for national security, OpenAI had announced a contract with the Pentagon to take over from its rival. The government has appealed the California decision, but the hearing will not take place until June at the earliest.
“Exponential” revenue growth
In their decision on Wednesday, the Washington judges found that the balance of interests favored the government: while Anthropic is likely to suffer “irreparable harm”, it is “primarily financial”, whereas the government’s stake concerns the security of Pentagon operations “in the context of an active military conflict.” While acknowledging the contracts lost by Anthropic, the court suggests that the company may have also benefited from them.
The judges cite statements from Dario Amodei, the head of Anthropic, to his employees – “the general public and the media see us as heroes (we are number 2 in the App Store!)” – and an article from the media outlet Digiday estimating that Anthropic’s opposition to the Pentagon “could turn out to be the best marketing investment in Silicon Valley in years.”
