The Department of Defense labeled AI lab Anthropic a supply-chain risk after the company refused to agree to allow the Pentagon to use its models for autonomous weapons systems and domestic surveillance. It seems the company isn’t just winning the moral argument on this front, but the legal one, too. According to Axios, the judge hearing Anthropic’s challenge to the Trump administration’s designation has thus far not found the Pentagon’s case to be particularly compelling.

Per the report, U.S. District Judge Rita Lin wasted little time pouring cold water on the federal government’s position. “I don’t see additional evidence from the government really justifying what it did. If anything, it seems like the record, in some ways, has gotten worse for the government,” she reportedly said.

She also did not seem convinced by the Pentagon’s apparent argument that it was concerned Anthropic would mess with its model to prevent the military from using it how they intended. “I don’t see evidence that Anthropic could alter the model after it was delivered or flip some kind of kill switch,” she said, per Axios.

This doesn’t come as a major surprise, given Judge Lin’s general vibe since this case landed in her court. Back in March when Anthropic first brought its challenge to the government’s designation, the judge said that “it looks like an attempt to cripple Anthropic.” She ultimately granted a temporary injunction on the government’s attempt to basically blacklist the AI firm.

You’ll recall the origin of this whole fight came earlier this year when negotiations between Anthropic and the Department of Defense fell through after the company refused to agree to a deal that would have allowed the Pentagon to use its AI models for “all lawful purposes.” Anthropic reportedly sought to clarify that it would not include using the model to launch weapons without human involvement or to perform surveillance on American citizens. The Pentagon was unwilling to agree to honor Anthropic’s redlines.

Under a normal administration, that would likely just lead to the government moving on to another company. Under the Trump administration, though, refusal to comply makes you an enemy of the country. Trump and company moved to label Anthropic a supply chain risk, a designation typically reserved for foreign adversaries, not domestic companies. Getting slapped with that tag meant the rest of the federal government would have to stop doing business with Anthropic, which would be a blow to the company.

Instead, the whole thing is in limbo—though it’s not looking great for the administration. Of course, they could just cancel the contracts and do business with less scrupulous AI companies. There are plenty willing to abandon their beliefs for a nice, fat contract, after all.