Federal court says US government can label Anthropic a supply chain risk

A federal appeals court on Friday rejected Anthropic's challenge to the Pentagon's labeling of the AI lab as a supply chain risk, ruling 2-1 in the government's favor and allowing the Pentagon to continue removing Anthropic's Claude models from its systems and bar their use for Defense Department work. The dispute began in February when President Donald Trump and Defense Secretary Pete Hegseth designated Anthropic a supply chain risk over national security concerns, and Anthropic CEO Dario Amodei refused to back down over worries the products could be used for mass surveillance or autonomous armed drones. Judge Gregory G. Katsas wrote for the majority that "the Department reasonably feared that Anthropic might manipulate Claude's design to prevent it from performing national-security functions that the Department deems contractually authorized and necessary," while Anthropic said it "respectfully disagrees" and is considering further review, noting a separate California federal ruling this summer found the Pentagon acted illegally.

Federal court says US government can label Anthropic a supply chain risk A federal appeals court has rejected Anthropic's challenge to the Pentagon's labeling of it as a supply chain risk - Bookmark Become an Independent member to bookmark this article Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Membership today. Join today https://www.independent.co.uk/subscribe?regSourceMethod=Bookmarks Already a member? Log in In the latest twist in Anthropic https://www.independent.co.uk/topic/anthropic 's dispute with the Pentagon https://www.independent.co.uk/topic/pentagon , a federal appeals court on Friday rejected the AI lab's challenge to the government's labeling of it as a supply chain risk. The decision allows the Pentagon to continue to remove Anthropic's Claude https://www.independent.co.uk/topic/claude models from its systems and bar the use of its products for Defense Department work. Judges from the U.S. Court of Appeals for the District of Columbia Circuit ruled 2-1 in the Pentagon's favor. The dispute between the AI company and the government broke out in February when President Donald Trump https://www.independent.co.uk/topic/donald-trump and Defense Secretary Pete Hegseth https://www.independent.co.uk/topic/pete-hegseth accused Anthropic of endangering national security and designated the company a supply chain risk. Anthropic CEO Dario Amodei refused to back down over concerns the company’s products could be used for mass surveillance or autonomous armed drones. “The Department reasonably feared that Anthropic might manipulate Claude’s design to prevent it from performing national-security functions that the Department deems contractually authorized and necessary,” Judge Gregory G. Katsas wrote in the majority opinion. The ruling is separate from one a federal judge made this summer in California, where she found the Pentagon acted illegally by punishing the AI company for its criticism of the Pentagon's views on AI use. This case, which was filed earlier this year in Washington, D.C., focused on a different rule the Pentagon was using to try to declare Anthropic a supply chain risk. An Anthropic spokesperson said in a statement the company “respectfully disagrees” with the court’s decision. “Another federal court has already held the government’s parallel designation unlawful,” the statement continued. "We remain confident in our position and are considering all options, including further review.” The White House did not immediately respond to a request for comment.