Anthropic seeks rehearing of case over Pentagon’s security risk branding

Anthropic is seeking a retrial from a US appeals court over the Pentagon's classification of the AI company as a national security risk. The legal battle stems from a disagreement about safety guardrails on Anthropic's technology. In September, a federal appeals court upheld the Pentagon's decision, agreeing that the company's restrictions could jeopardize military operations.

Anthropic claims the Pentagon's move has cost it billions in potential revenue. The company argues that the appeals court majority misinterpreted a federal law aimed at foreign adversaries, turning it into a blanket designation for all government contractors. The court allowed the Pentagon to act against Anthropic without a proper pre-designation process, despite evidence suggesting the decision was retaliation for the company's public stance on AI safety.

In August, a California federal judge overturned a similar designation under another law. Anthropic's CEO, Dario Amodei, has called for comprehensive regulation of all US frontier AI firms, while the Trump administration has favored a growth-oriented approach.