Artificial Intelligence
Court upholds Pentagon bar on Anthropic contracts
A federal appeals court backed the Pentagon’s move to treat Anthropic as a security supply chain risk, while the company said the designation has cost it billions and is affecting its IPO plans.
- A federal appeals court in Washington upheld the Pentagon’s decision to bar Anthropic from military contracts.
- The court ruled 2-1 that the company could be classified as a national security supply chain risk, according to CNBC.
- Anthropic said the designation had cost it billions and was harming its planned IPO.
- In late August, a federal judge in San Francisco blocked a separate classification under another law.
- US intelligence agencies were reported to be heavy users of Anthropic’s AI models.
A federal appeals court in Washington upheld the Pentagon’s decision to keep Anthropic out of military contracts. The court split 2-1 and, according to CNBC, backed the national security supply chain risk designation.
The dispute arose from Anthropic’s refusal to allow its technology to be used for autonomous weapons and mass surveillance. Defense Secretary Pete Hegseth argued that Anthropic’s safety restrictions could put military operations at risk.
Anthropic rejected the ruling and said it was considering its next move. The company also said the designation had already cost it billions and was affecting its planned IPO.
In late August, a federal judge in San Francisco stopped a separate classification made under a different law, saying it was unlawful retaliation over Anthropic’s AI safety position. The article also said that US intelligence agencies used Anthropic’s AI models heavily.
The piece added that parts of the tech industry and former military officials supported Anthropic. It also said President Trump had explicitly said the administration was punishing the company because it saw it as left-leaning and woke.
Named in this story
People
- Defense Secretary Pete Hegseth
- argued Anthropic’s restrictions could affect military operations
- President Trump
- was said to have said the administration was punishing the company
Companies
- Anthropic
- sought to keep its AI out of military uses and challenged the designation
Organisations
- federal appeals court in Washington
- upheld the Pentagon’s decision in a 2-1 ruling
Governments and agencies
- Pentagon
- classified Anthropic as a national security supply chain risk
- US intelligence agencies
- were said to use Anthropic’s AI models heavily
Places
- San Francisco
- was where a federal judge blocked a parallel classification
How the source tells it
Mostly a straight legal and policy report, but it carries brief partisan framing through the repeated motive claims and the loaded headline wording.
- political grievance motive language about punishment and partisan labels is repeated without independent support
- conflict the dispute is cast through adversarial court and administration actions