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[TECHNOLOGY] · United States · 45 sources

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Anthropic supply chain risk designation upheld by federal appeals court

A federal appeals court in Washington, D.C., has upheld the Pentagon's decision to designate AI developer Anthropic as a supply chain risk. In a 2-1 ruling, the D.C. Circuit Court of Appeals determined that the Department of Defense had sufficient grounds to exclude Anthropic and its Claude AI models from military contracts.

The dispute stems from Anthropic's refusal to remove built-in safeguards that prevent its technology from being used for mass domestic surveillance or the development of fully autonomous lethal weapons. The court majority found that these software restrictions could make the technology unreliable for military operations, thereby posing a legitimate national security risk under the Federal Acquisition Supply Chain Security Act.

This ruling stands in contrast to a separate decision by a federal judge in California, which had previously invalidated different government measures against the company, citing First Amendment concerns. Anthropic has expressed disagreement with the decision, noting the potential for significant reputational and financial damage as the company prepares for a major initial public offering.

Entities

Anthropic · Computer & Communications Industry Association · D.C. Circuit Court of Appeals · Dario Amodei · Donald Trump · Gregory Katsas · Pentagon · Pete Hegseth · U.S. Court of Appeals for the District of Columbia Circuit

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