Anthropic loses early appeal over Pentagon ‘supply chain risk’ label

“In our view, the equitable balance here cuts in favor of the government,” said a panel of judges from the District of Columbia Court of Appeals.

The US Court of Appeals for the DC Circuit rejected Anthropic’s request to pause a Pentagon designation labeling the firm a national security supply chain risk.

The three-judge panel denied the emergency motion for a stay on Wednesday, ruling that the government’s interest in controlling how it secures AI technology during active military conflict outweighed any financial or reputational harm Anthropic may suffer from the label.

The decision means that part of the US Department of Defense’s official designation of Anthropic’s products as a “supply-chain risk to national security” remains in place. 

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