Federal appeals court declines to block Pentagon from blacklisting Anthropic

A federal appeals court on Friday dismissed Anthropic's attempt to block the Pentagon from labeling the AI firm as a supply chain risk. The U.S. Court of Appeals for the District of Columbia Circuit upheld the Pentagon's designation in a 2-1 decision. Anthropic contended the government's move was an attempt to retaliate against the company for its stance against using its AI for lethal autonomous warfare or mass surveillance.

The majority ruling stated the Pentagon had sufficient evidence to deem Anthropic's AI unreliable for military operations due to its built-in restrictions and a contract dispute. Judge Karen LeCraft Henderson dissented, arguing the law did not equate honest enforcement of restrictions with a supply-chain risk. Anthropic expressed disappointment with the appellate court's decision but remains confident in its stance, considering further legal action.

Defense Secretary Pete Hegseth and Department of Defense spokesman Sean Parnell both praised the court's ruling, praising the Department of War's commitment to national security.