A US appeals court on Friday upheld the Defense Department's decision to exclude Anthropic from its supply chain, a move taken after the AI startup refused to remove certain safeguards from its Claude model. The ruling marks a significant development in the ongoing dispute between the company and the US regime.
The conflict began in February when Anthropic rejected a demand from Pentagon Secretary Pete Hegseth to remove restrictions on using Claude for fully autonomous lethal weapons and mass domestic surveillance of Americans. In March, a supply chain risk designation was issued, canceling Anthropic's military contracts and barring other Defense Department contractors from using its technology. This designation represented a highly unusual application of authority against a US company.
Anthropic has said the blacklisting cost it billions of dollars in lost business and damaged its reputation ahead of a highly anticipated initial public offering. The company has reportedly become a pariah at the White House, even as it plays a major role in the crucial AI sector and heads for a blockbuster IPO expected in the coming weeks. The White House has bristled at Anthropic CEO Dario Amodei's repeated warnings about the dangers of AI, with US President Donald Trump calling them a hoax.
The appeals court decision created a potential legal conflict with a separate federal court decision in California last month that found a broader ban imposed by the Trump administration against Anthropic was illegal. The Pentagon decision upheld on Friday was based on public procurement regulations and now remains in effect. The military had reportedly been using Claude across a range of classified and sensitive systems, including during the January operation that captured and deposed Venezuelan leader Nicolas Maduro.
"We respectfully disagree with the court's decision. Another federal court has already held the government's parallel designation unlawful. We remain confident in our position and are considering all options, including further review," an Anthropic spokesperson said in a statement to US media. The ruling underscores the growing tension between national security imperatives and AI safety concerns, with the US regime allegedly prioritizing military applications over ethical safeguards.
Source: www.aljazeera.com