Federal Court Supports Pentagon’s Ban on Anthropic AI Contracts
A federal appeals court has affirmed the Pentagon’s decision to exclude artificial intelligence firm Anthropic from military contracts, marking a significant win for President Donald Trump and Defense Secretary Pete Hegseth amid ongoing concerns regarding the company’s safety protocols.
On Friday, the United States Court of Appeals in Washington, D.C., delivered a 2-1 ruling against Anthropic’s lawsuit challenging the Pentagon’s March conclusion that classified the company as a national security supply chain risk.
The designation, according to Anthropic, has resulted in billions in lost revenue and damaged its reputation as it approaches a major initial public offering.
The court’s majority opinion stated that the Pentagon’s classification of Anthropic as a supply chain risk was warranted, particularly after the company barred its products from being utilized for mass surveillance or autonomous weaponry. This stance led the judges to dismiss Anthropic’s claims of government retaliation against its safety and ethical standards.
Judge Gregory Katsas, who authored the majority opinion, sided with Secretary Hegseth by noting that the safety constraints imposed by Anthropic could pose a military threat. He articulated a concern that “overly constrained AI models shutting down unexpectedly could jeopardize critical military operations.”
In response to the ruling, Anthropic, based in San Francisco, expressed its respectful disagreement. The company asserted confidence in its legal position and mentioned that it is weighing its options, which may include appealing to the full appeals court for a review of the decision made by the three-judge panel.
An Anthropic spokesperson remarked, “Another federal court has already deemed the government’s parallel designation unlawful. We remain confident in our position and are considering all options, including further review.”
On the other side, Hegseth took to social media to celebrate the ruling, declaring support for the decision.
“Confirmed: [AnthropicAI] = Supply Chain Risk,” Hegseth stated in his post. “The [Department of War] does what is right for the Country and our Warriors.”
