Stories
Anthropic Faces Setback in US Supply Chain Risk Battle
- •A federal appeals court in Washington upheld the Trump administration's designation of Anthropic as a supply-chain risk to US national security.
- •The 2-1 decision by the US Court of Appeals for the DC Circuit is a victory for the administration in its dispute with Anthropic over the Claude chatbot.
- •Anthropic refused to allow the Department of Defense to use Claude for lethal autonomous warfare or domestic surveillance, leading to the risk designation.
- •An earlier ruling by a federal judge in San Francisco, which lifted a government ban on Anthropic's technology, remains in effect.
- •Anthropic stated it "respectfully disagrees" with the decision and is considering further options, maintaining confidence in its position.
Key Questions Answered
A federal appeals court in Washington rejected Anthropic's challenge to the Trump administration designation labeling the artificial intelligence company as a national security supply-chain risk. The 2-1 decision by the DC Circuit favored the administration after contract negotiations involving the Claude chatbot failed.
Negotiations collapsed because Anthropic refused to lift contractual prohibitions restricting the military from using its Claude chatbot for lethal autonomous warfare or domestic surveillance. The government wanted to deploy the technology without any restrictions, leading the Pentagon to declare the company a supply-chain risk.
Yes, an August order issued by a federal judge in San Francisco in a separate lawsuit filed by Anthropic remains in effect and continues to block the government ban. That court concluded the restriction wasn't adequately justified under the narrow statutory definition of a supply-chain risk involving adversary sabotage.
