Anthropic Loses Pentagon Blacklist Appeal as Court Upholds Supply Chain Risk Designation
26 Sources
[1]
Court rules Trump can blacklist Anthropic for refusing to enable Claude features
A US appeals court today approved the Trump administration's blacklisting of Anthropic technology. Judges decided the US had authority to blacklist Anthropic for withholding certain AI features even if Anthropic had no malicious intent. In a 2-1 ruling issued by the US Court of Appeals for the
[2]
Appeals Court Lets the Pentagon Designate Anthropic a Supply Chain Risk
Anthropic lost a legal battle to overturn one of the supply-chain risk labels that the US Department of Defense slapped on the company, as a federal appeals court in DC on Friday refused to second-guess the Trump administration. "The department had ample support for its conclusion that the
[3]
Judges Uphold Anthropic's Pentagon Blacklist
( Credit: Omar Marques/SOPA Images/LightRocket via Getty Images) In March, AI giant Anthropic was slapped with the label of supply chain risk, severely limiting its ability to provide services and software to the US government and military directly. It began fighting the decision shortly after,
[4]
US appeals court declines to block Pentagon's blacklisting of Anthropic
NEW YORK, Sept 25 (Reuters) - A federal appeals court on Friday declined to block a Defense Department order blacklisting Anthropic from government contracts and deeming the AI startup a national security risk. The ruling from the US Court of Appeals for the District of Columbia Circuit came in a
[5]
Federal court says Pentagon can label Anthropic a supply chain risk
In the latest twist in Anthropic's dispute with the Pentagon, a federal appeals court on Friday rejected the artificial intelligence 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 models from its
[6]
U.S. appeals court upholds Pentagon designation of Anthropic as supply chain risk
A federal appeals court in Washington, D.C., on Friday upheld the Pentagon's blacklisting of Anthropic, a blow to the artificial intelligence company in its months-long battle with the Trump administration. In a 2-1 decision, Circuit Judge Gregory Katsas and Circuit Judge Neomi Rao rejected
[7]
Anthropic's Blacklisting by the Pentagon Was Legal, Federal Judges Rule
Sign up for the On Tech newsletter. Get our best tech reporting from the week. Get it sent to your inbox. The Trump administration acted legally and constitutionally when it labeled the artificial intelligence start-up Anthropic a security risk and barred the company from working with the U.S.
[8]
Federal Appeals Court Backs Pentagon's Anthropic Blacklisting
A federal appeals court in Washington, D.C., has thrown its support behind the Trump administration's efforts to blacklist Anthropic as a "supply chain risk," a label which would prevent the company from partnering with the U.S. military or federal contractors. The 2-1 decision arrived Friday,
[9]
Appeals court upholds Pentagon supply chain risk label on Anthropic
A US appeals court ruled 2-1 that the Pentagon lawfully labelled Anthropic a supply chain risk. Anthropic says it disagrees and is considering all options, after winning a parallel case in August. A US appeals court has upheld the Pentagon's decision to label Anthropic a supply chain risk. The
[10]
Federal appeals court upholds Pentagon's Anthropic blacklist
Anthropic suffered a legal setback Friday when a federal appeals court upheld the Pentagon's designation of the AI company as a national security supply chain risk, leaving its blacklisting from military contracts in force, according to CNBC. The U.S. Court of Appeals for the District of Columbia
[11]
US court sides with Pentagon in Anthropic AI ban
Washington (United States) (AFP) - A US appeals court upheld on Friday the Pentagon's decision to exclude Anthropic from its supply chain, a decision taken when the AI startup refused to remove certain safeguards on its Claude model. The conflict began in February when Anthropic refused Pentagon
[12]
Federal court allows the U.S. government to label Anthropic a supply chain risk
Judges from the U.S. Court of Appeals for the District of Columbia Circuit ruled 2-1 in the Pentagon's favor. In the latest twist in Anthropic's dispute with the Pentagon, a federal appeals court on Friday rejected the AI lab's challenge to the government's labeling of it as a supply chain
[13]
Federal court says US government can label Anthropic a supply chain risk
In the latest twist in Anthropic's dispute with the 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 models from its systems and bar the
[14]
US court refuses to overturn Pentagon ban on Anthropic
Washington (United States) (AFP) - A US appeals court upheld on Friday the Pentagon's decision to exclude Anthropic from its supply chain, a decision taken when the AI startup refused to remove certain safeguards on its Claude model. The conflict began in February when Anthropic refused Pentagon
[15]
D.C. appeals court sides with Pentagon on blacklist of Anthropic
The D.C. Circuit Court of Appeals sided with the Trump administration in its blacklisting of the artificial intelligence firm Anthropic, finding the Pentagon adequately backed up its decision to label the firm a national security risk. The 2-1 ruling, issued Friday, rejected Anthropic's challenge,
[16]
Federal Court Says US Government Can Label Anthropic a Supply Chain Risk
In the latest twist in Anthropic's dispute with the 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 models from its systems and bar the
[17]
Federal Court Says U.S. Government Can Label Anthropic A Supply Chain Risk
The decision allows the Pentagon to continue to remove Anthropic's Claude models from its systems and bar the use of its products for Defense Department work In the latest twist in Anthropic's dispute with the Pentagon, a federal appeals court on Friday rejected the AI lab's challenge to the
[18]
US Appeals Court Declines to Block Pentagon's Blacklisting of Anthropic
NEW YORK, Sept 25 (Reuters) - A federal appeals court on Friday declined to block a Defense Department order blacklisting Anthropic from government contracts and deeming the AI startup a national security risk. The ruling from the US Court of Appeals for the District of Columbia Circuit
[19]
Anthropic Loses Key Court Fight With Pentagon
Anthropic lost a major legal challenge Friday after a federal appeals court upheld the U.S. government's decision to exclude the artificial intelligence company from the Pentagon's supply chain over concerns tied to its restrictions on how Claude can be used. The 2-1 ruling from the U.S. Court of
[20]
US appeals court upholds Pentagon's blacklisting of Anthropic from military contracts
A federal appeals court on Friday declined to block a Defense Department order blacklisting Anthropic from military contracts and deeming the AI startup a national security risk. The ruling from the US Court of Appeals for the District of Columbia Circuit came in a lawsuit by Anthropic challenging
[21]
Anthropic-Pentagon Fight: Court Upholds AI Firm's FASCSA Designation
A US federal appeals court upheld the Pentagon's decision to designate AI company Anthropic as a supply-chain risk, allowing the government to keep the company's Claude AI models out of Pentagon systems and work performed by its contractors. The 2-1 ruling came from the US Court of Appeals for the
[22]
Appeals court declines to block Pentagon's blacklisting of Anthropic
A federal appeals court on Friday declined to block a Defense Department order blacklisting Anthropic from government contracts and deeming the AI startup a national security risk. The ruling from the US Court of Appeals for the District of Columbia Circuit came in a lawsuit by Anthropic
[23]
Anthropic supply-chain designation upheld in AI military dispute By Investing.com
Investing.com -- A federal appeals court on Friday upheld the Department of War's decision to remove artificial intelligence developer Anthropic (NASDAQ:ANTP) from its supply chain, delivering a major legal victory to the Trump administration in a landmark battle over the military's use of frontier
[24]
Anthropic's Pentagon blacklist upheld in US appeals court: How the conflict unfolded
Sept 25 (Reuters) - A US appeals court on Friday upheld the Pentagon's decision to blacklist Anthropic from military contracts, affirming the AI lab's designation as a national security supply-chain risk and extending a months-long standoff over military access to its frontier models. The dispute
[25]
US appeals court upholds Pentagon's blacklisting of Anthropic
NEW YORK, Sept 25 (Reuters) - A federal appeals court on Friday declined to block a Defense Department order blacklisting Anthropic from military contracts and deeming the AI startup a national security risk. The ruling from the US Court of Appeals for the District of Columbia Circuit came in a
[26]
US appeals court declines to block Pentagon's blacklisting of Anthropic
NEW YORK, Sept 25 (Reuters) - A federal appeals court on Friday declined to block a Defense Department order blacklisting Anthropic from government contracts and deeming the AI startup a national security risk. The ruling from the US Court of Appeals for the District of Columbia Circuit came in a
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A US appeals court ruled 2-1 in favor of the Pentagon's authority to blacklist Anthropic as a supply chain risk, allowing continued removal of Claude AI models from Defense Department systems. The decision comes despite a separate California court ruling that found the designation unlawful, setting up a complex legal battle ahead of Anthropic's anticipated IPO.
US Appeals Court Validates Pentagon's Authority Over Anthropic
The US Court of Appeals for the District of Columbia Circuit delivered a 2-1 ruling upholding the Pentagon's authority to designate Anthropic as a supply chain risk, marking a significant setback for the AI company in its legal battle against the Trump administration
1
. The decision allows the Department of Defense to continue removing Claude AI models from its systems and prohibit defense contractors from using Anthropic's products in government work5
.Judges Gregory Katsas and Neomi Rao, both Trump appointees who served in the first Trump administration, formed the majority opinion. Judge Karen LeCraft Henderson, appointed by President George H.W. Bush, dissented
3
. The panel acknowledged the case "raises profoundly difficult questions about the appropriate military uses of an almost unimaginably powerful new technology," balancing risks between overly constrained AI models failing during military operations and unconstrained models potentially hallucinating inappropriate targets for lethal force1
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Source: The Next Web
Two Courts, Two Conflicting Decisions Create Legal Complexity
The ruling creates a split legal landscape for Anthropic, as a separate federal judge in the Northern District of California previously ruled the Pentagon's designation unlawful
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. Judge Rita Lin in San Francisco found the blacklist violated the First Amendment and constituted unlawful retaliation, saying it was an attempt to "make an example" out of Anthropic3
.The conflicting rulings stem from the Pentagon's use of two distinct legal designations under different statutes. The California court reviewed the designation under 10 U.S.C. § 3252, which limits supply chain risks to malicious actions by adversaries. The DC Circuit appeals court, however, reviewed the blacklisting under 41 U.S.C. § 4713, which contains a broader definition and doesn't require proof of bad motive
1
. Congress granted the DC Circuit exclusive jurisdiction to review procurement actions under Section 4713 designations1
.
Source: Fast Company
Court Focuses on Actions, Not Intentions Behind AI Safety Restrictions
The majority opinion emphasized that the definition of a national security risk hinges "on what Anthropic does, not why Anthropic does it"
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. Judge Katsas wrote that the Department of Defense had "ample support" for its conclusion that integrating Claude into government systems presented a statutorily covered national security risk2
.The court noted that Anthropic admits encoding restrictions into Claude that prevent the model from performing certain tasks. These restrictions have stopped Claude "from performing tasks requested by government users" on "more than one" occasion
3
. The judges acknowledged having "no reason to doubt" that Anthropic acts with "noble intentions" regarding AI safety and privacy concerns, but ruled this didn't prevent the Pentagon from determining the restrictions posed a supply chain risk5
.Related Stories
Business Impact and IPO Implications
Anthropic has claimed the supply chain risk designation cost it billions of dollars in lost business and damaged its reputation ahead of a highly anticipated initial public offering
4
. In the immediate aftermath of the designations, Anthropic reported losing revenue as customers grew concerned about doing business with a government pariah2
.Despite the legal challenges, Anthropic has generally touted growing sales in recent months and continues moving toward its potential IPO later this year
2
. Commerce Secretary Howard Lutnick recently indicated that the Trump administration and Anthropic have improved their relationship and are "in tune," though the legal battle continues1
.
Source: PC Magazine
Next Steps and Alternative AI Deployment
Anthropic spokesperson Danielle Cohen stated the company "respectfully disagrees" with the court's decision and is "considering all options, including further review"
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. The company could appeal by requesting an en banc review with all appeals court judges or petitioning the US Supreme Court1
. Both current rulings face the prospect of years of appeals before being fully resolved2
.Meanwhile, the Pentagon hasn't provided detailed updates about replacing Claude with alternatives such as SpaceX's Grok, Google's Gemini, or OpenAI's GPT models
2
. Some employees at Google and OpenAI have objected to their employers striking deals with the US military that Anthropic rejected, citing ethical concerns, but both companies have described supporting the US government as crucial2
.References
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