Anthropic asks appeals court to reconsider Pentagon blacklisting

Anthropic (ANTHRO) has asked a U.S. appeals court to reconsider its decision upholding the Pentagon's designation of the AI company as a national security supply chain risk.

In a petition filed with the U.S. Court of Appeals for the District of Columbia Circuit, Anthropic argued that the court's September ruling misinterpreted a federal law intended to address hostile foreign actors and extended it to government contractors.

The company also said the Pentagon acted without a prior designation process and that evidence showed the decision was retaliation for its public positions on AI safety.

In March, the Pentagon, under Defense Secretary Pete Hegseth, designated Anthropic a supply chain risk, barring defense contractors from using its technology in work for the agency. This came after a dispute over a $200M contract with the Pentagon regarding the use of AI technology in classified systems.

The appeals court ruled 2-1 in September that the Pentagon acted reasonably in designating Anthropic a supply chain risk after the company refused to allow its AI technology to be used in autonomous weapons or mass surveillance.

The majority also rejected Anthropic's claim that the designation was retaliation for its views on AI safety.

Anthropic has said the designation has cost it billions of dollars in lost business.

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