Federal judge halts Trump administration’s designation of Anthropic as supply chain risk Judge Alsup ruled Anthropic’s use of lawfully acquired books for AI training qualifies as fair use, but its pirated book usage may face “criminal-level” copyright penalties in a December trial. Judge Lin paused Trump’s designation of Anthropic as a supply chain risk, granting temporary relief from Pentagon contract bans and reputational damage. Anthropic argues the Trump administration’s blacklisting was politically motivated, while the Pentagon claims Claude’s AI poses legitimate data integrity and foreign influence risks. The injunction questions whether sweeping restrictions on private-sector partnerships (beyond government use) are proportionate or…
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