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Lin last week said she was blocking the Pentagon from labeling Anthropic a supply chain risk. She also said she was blocking enforcement of President Donald Trump’s social media directive ordering all federal agencies to stop using Anthropic and its chatbot Claude.

Lin said the “broad punitive measures” taken against the AI company by the Trump administration and Defense Secretary Pete Hegseth appeared arbitrary, capricious and could “cripple Anthropic,” particularly Hegseth’s use of a rare military authority that’s previously been directed at foreign adversaries.

“Nothing in the governing statute supports the Orwellian notion that an American company may be branded a potential adversary and saboteur of the U.S. for expressing disagreement with the government,” Lin wrote.

A top Pentagon official last week called Lin's order a “disgrace.” U.S. Defense Undersecretary Emil Michael, the Pentagon’s chief technology officer, said on social media it would disrupt Hegseth's “full ability to conduct military operations with the partners it chooses.”

Lin had stayed her order for a week, which gave time for the Pentagon to take the case to the Ninth Circuit Court of Appeals. She had also said her order doesn’t require the Pentagon to use Anthropic’s products or prevent it from transitioning to other AI providers.

Anthropic has also filed a separate and more narrow case that is still pending in the federal appeals court in Washington, D.C. That case involves a different rule the Pentagon is using to try to declare Anthropic a supply chain risk.

Trump and Hegseth publicly announced their actions against Anthropic on Feb. 27 after negotiations over a defense contract went sour over the company’s attempt to prevent its AI technology from being deployed in or surveillance of Americans. The Pentagon had argued that it should be able to use Claude in any way it deems lawful.

A number of third parties had filed legal briefs supporting Anthropic’s case, including Microsoft, industry trade groups, rank-and-file tech workers, retired U.S. military leaders and a group of Catholic theologians.