Stories

Anthropic
M
Moneycontrol•14-10-2026, 07:22
Anthropic Appeals Court Rehearing Request Over National Security Risk Designation
  • •Anthropic PBC has urged the federal appeals court in Washington to review a recent decision upholding the Trump administration's designation of the company as a supply-chain risk to US national security.
  • •The legal battle centers on whether the government or private companies control safety guardrails for AI technology as developers race to build advanced models.
  • •The conflict began after contract negotiations between Anthropic and the military broke down over the company's demands that its technology not be used for mass surveillance or autonomous weapons.
  • •In March, the Pentagon designated Anthropic as a risk to the US supply chain, prompting federal agencies to withdraw directives related to the firm.
  • •Anthropic argued the majority in the 2-1 ruling incorrectly interpreted the law and that the designation was retaliation for the company's speech about AI safety.

Key Questions Answered

Anthropic urged the full appeals court to revisit the 2-1 ruling because it argued the majority incorrectly allowed the Defense Department to take action without any pre-designation process and despite evidence of retaliation for the company's speech about AI safety.

Contract talks broke down after Anthropic sought assurances that its AI technology would not be utilized for mass surveillance or autonomous weapons deployment. The government stated it could not accept any restrictions on its use due to national security priorities.

A federal appeals court in Washington ruled that the Pentagon's designation was lawful. Meanwhile, a US District Judge in San Francisco ordered the administration to lift its ban on federal agencies using Anthropic's technology, concluding the actions appeared to be retaliatory.