Anthropic Seeks Rehearing of Case over Pentagon’s Security Risk Branding

Anthropic, an artificial intelligence company, has petitioned the US Court of Appeals in Washington, DC, for a rehearing in a case concerning the Pentagon's designation of the firm as a national security supply chain risk. This decision, upheld by a federal appeals court in September, stems from a dispute over safety guardrails on Anthropic's technology.

The Pentagon argues that the company's restrictions could jeopardize military operations. The ruling has caused the AI firm to lose billions in potential business. Anthropic contends that the court misinterpreted federal law, transforming it into one that reaches every government contractor. The company argues that the Pentagon's action against it was retaliation for Anthropic's public stance on AI safety, without following the appropriate pre-designation process.

In a separate lawsuit, a California federal judge recently struck down a similar designation under a different law. Anthropic's CEO, Dario Amodei, has called for comprehensive regulation across all US frontier AI companies, while the Trump administration has favored a more growth-oriented approach.