Pentagon was right to slap Anthropic with a security supply chain risk label, federal court says
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A federal appeals court in Washington has upheld the Pentagon's decision to classify AI startup Anthropic as a national security supply chain risk, thereby barring it from military contracts. The ruling was issued in a 2-1 decision that supports Defense Secretary Pete Hegseth's argument that Anthropic's safety restrictions could jeopardize military operations. This classification stems from Anthropic's refusal to allow its technology to be used for autonomous weapons and mass surveillance. While this specific designation stands, a separate federal judge in San Francisco previously blocked a parallel classification under different laws, deeming it unlawful retaliation against the company's safety stance. Anthropic reports that these designations have cost the company billions of dollars and are negatively impacting its planned initial public offering. Meanwhile, US intelligence agencies continue to rely heavily on Anthropic's models, raising questions about how this usage aligns with the risk label. The Trump administration has been accused by some observers of punishing the company due to its perceived political leanings.
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