Federal appeals court upholds Pentagon designation of Anthropic as supply chain risk
18 Sources
[1]
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
[2]
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
[3]
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
[4]
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.
[5]
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
[6]
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
[7]
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
[8]
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
[9]
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
[10]
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,
[11]
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
[12]
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
[13]
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
[14]
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
[15]
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
[16]
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
[17]
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
[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 came in a
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A federal appeals court in Washington DC ruled 2-1 that the Pentagon lawfully designated Anthropic a supply chain risk, blocking Claude AI models from military use. The decision contradicts an earlier California ruling that struck down a parallel designation, leaving Anthropic in legal limbo as it prepares for its IPO.
Federal Appeals Court Upholds Pentagon's National Security Risk Label
A federal appeals court in Washington DC delivered a significant blow to Anthropic on Friday, upholding the Pentagon's designation of the AI company as a supply chain risk in a 2-1 decision
1
. The US Court of Appeals for the District of Columbia Circuit rejected Anthropic's arguments that the US Department of Defense acted arbitrarily and unconstitutionally when it blacklisted the company from government contracts3
.
Source: Fast Company
Circuit Judge Gregory Katsas, writing the majority opinion alongside Circuit Judge Neomi Rao, stated that "the Department had ample support for its conclusion that the continued integration of Claude into the Department's information systems, by the Department or its contractors, presented a statutorily covered national-security risk"
1
. Circuit Judge Karen LeCraft Henderson dissented from the ruling3
.Contract Dispute Over Autonomous Weapons and Mass Surveillance
The legal battle stems from a $200 million contract dispute that erupted earlier this year between the Trump administration and Anthropic
4
. Anthropic executives insisted their Claude AI models not be deployed for lethal autonomous warfare or domestic surveillance of Americans. Secretary of Defense Pete Hegseth deemed this stance a significant national security risk and formally designated Anthropic under supply-chain laws, requiring the removal of Claude AI models from military and federal government systems1
.The court noted that Anthropic encodes restrictions into Claude that prevent the model from performing certain tasks. These restrictions had "more than once stopped Claude from doing tasks government users asked for," and disputes arose over whether contract terms would bar Claude's use in ongoing overseas military operations
5
.
Source: The Next Web
Anthropic's Constitutional Claims Rejected
The majority opinion dismissed Anthropic's claims that its due process and free speech rights were violated. The judges determined that the Pentagon "excluded Anthropic from its supply chain based on the company's refusal to assent to a contract term that the Department deemed essential, not based on the company's support for greater governmental regulation of AI technology"
1
. The court found this to be standard contract negotiations rather than retaliation for protected speech4
.However, the dissenting judge, Karen LeCraft Henderson, disagreed with how the majority interpreted the 2018 supply chain security law. She argued that Congress passed the law to address hostile states and bad actors infiltrating federal systems through suppliers, which does not cover a contractor's "honest and upfront enforcement of restrictions" on government use of its product
5
.Related Stories
Conflicting Court Rulings Create Uncertainty
Anthropic faces a complex legal situation as the Pentagon sanctioned the company under two separate supply-chain laws, requiring challenges in different courts
1
. While the DC appeals court upheld one designation, a federal judge in San Francisco struck down the other supply chain risk label in March and confirmed that decision in August4
5
.This split leaves Anthropic in an awkward position as it prepares for a highly anticipated initial public offering later this year
2
. Anthropic spokesperson Danielle Cohen stated the company "remains confident in our position and is considering all options," which could include appealing to a broader panel of the DC Circuit Court of Appeals or the US Supreme Court1
.Business Impact and Competitor Positioning
Anthropic has stated the designation cost it billions of dollars in lost business and damaged its reputation
2
. In the immediate aftermath, the company reported losing revenue as customers grew concerned about doing business with a government pariah1
. Despite this setback, Anthropic has generally touted growing sales in recent months.
Source: New York Post
Meanwhile, the Pentagon has not provided detailed updates about replacing Claude with alternatives such as SpaceX's Grok, Google Gemini, or OpenAI's GPT models
1
. Some employees at Google and OpenAI have objected to their employers pursuing deals with the US military that Anthropic rejected, citing ethical concerns. However, both companies have described supporting the US government as crucial and brushed aside internal protests1
.The Friday ruling means the Pentagon's Anthropic blacklisting can continue indefinitely, though both court decisions face the prospect of years of appeals before being fully resolved
1
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