Federal court says US government can label Anthropic a supply chain risk
In the latest twist in Anthropic's dispute with the Pentagon, a federal appeals court on Friday rejected the AI lab’s challenge to the government’s labeling of it as a supply chain risk.

TL;DR
- A federal appeals court rejected Anthropic's challenge to being labeled a supply chain risk by the Pentagon.
- The ruling allows the Pentagon to remove Anthropic's Claude models from its systems and bar their use for Defense Department work.
- The dispute began in February when the government accused Anthropic of endangering national security.
- Anthropic CEO Dario Amodei opposed the designation due to concerns about mass surveillance and autonomous drones.
- The court sided with the Pentagon, fearing Anthropic might manipulate Claude's design to hinder national security functions.
- This ruling is separate from a previous California case where a judge found the Pentagon acted illegally in punishing the company for its criticism.
- Anthropic respectfully disagrees with the decision and is considering further review, noting another court previously found a similar designation unlawful.