Pakistan, Aug. 28 -- A US federal judge has blocked the Pentagon from blacklisting artificial intelligence company Anthropic. The ruling marks a major legal setback for the Trump administration. Judge Rita Lin ruled that the Defense Department acted unlawfully against the company. The Pentagon had designated Anthropic as a national security supply-chain risk. That decision threatened the company's military contracts and other government business. The judge described the designation as "illegal and baseless" in her ruling.

The dispute began after Anthropic rejected the Pentagon's demand for unrestricted military access to its Claude AI models. The company raised concerns about how the technology could support military operations. Anthropi...