U.S. Appeals Court Upholds Pentagon Designation of Anthropic as Supply Chain Risk
A federal appeals court in Washington, D.C., on Friday upheld the Pentagon's designation of Anthropic as a supply chain risk, rejecting the AI company's challenge in a 2-1 decision. Judge Karen LeCraft Henderson dissented.
In a 2-1 decision, Circuit Judge Gregory Katsas and Circuit Judge Neomi Rao rejected Anthropic's argument that the Department of Defense's decision to designate the company a supply chain risk was arbitrary, unauthorized and unconstitutional. Circuit Judge Karen LeCraft Henderson dissented.
Katsas wrote in the opinion for the court that the Department had ample support for its conclusion that "the continued integration of Claude into the Department's information systems, by the Department or its contractors, presented a statutorily covered national-security risk."
The ruling upholds the Pentagon's designation of Anthropic as a supply chain risk. The court's opinion addressed the integration of Claude, the company's AI system, into the Department of Defense's information systems. CNBC reported that the decision was a blow to Anthropic after a months-long battle with the Trump administration.