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US Court Rejects Anthropic Bid to Pause Risk Label

 

A U.S. appeals court denied Anthropic’s request to halt a Pentagon risk designation, keeping restrictions in place during ongoing litigation.

 

 

The U.S. Court of Appeals for the District of Columbia Circuit has denied artificial intelligence company Anthropic’s emergency request to pause the Pentagon’s designation of the firm as a national security “supply chain risk,” allowing the restriction to remain in force while legal proceedings continue.

 

Appeals Court Maintains Pentagon Designation

 

The three-judge appellate panel ruled that Anthropic failed to meet the legal threshold required to justify a temporary stay, determining that the government’s national security interests outweighed the company’s claims of financial and reputational harm.

 

The designation, imposed by the U.S. Department of Defense, restricts Anthropic’s ability to participate in Pentagon contracts and may extend to contractors required to certify they are not using the company’s artificial intelligence systems in defense-related work.

 

The court’s decision is procedural and does not resolve the underlying legal dispute over whether the Pentagon acted lawfully in applying the designation.

 

Dispute Centers on AI Use in Military Applications

 

The conflict between Anthropic and the Pentagon emerged after the company declined to permit certain uses of its AI systems, including applications tied to surveillance and fully autonomous weapons.

 

Anthropic has argued in court filings that the designation constitutes unlawful retaliation and violates constitutional protections, including First and Fifth Amendment rights.

 

The U.S. Department of Justice, representing the government, has countered that the designation resulted from contractual disagreements rather than the company’s stated positions on AI safety and military use.

 

Conflicting Federal Court Rulings

 

The Washington appellate decision contrasts with a prior ruling by U.S. District Judge Rita Lin in California, who granted a preliminary injunction temporarily blocking aspects of the Pentagon’s action.

 

Judge Lin found that the government’s designation could be unlawful and potentially arbitrary, ordering a pause on enforcement while litigation proceeds in that jurisdiction.

 

The parallel cases reflect the structure of the legal challenge, with Anthropic pursuing claims under separate statutes in different federal courts.

 

Unprecedented Application of Supply Chain Law

 

The Pentagon’s designation is notable because such “supply chain risk” labels are typically applied to foreign entities rather than U.S.-based companies.

 

The classification requires organizations working with the Defense Department to avoid using the designated company’s technology in relevant contracts, effectively limiting access to government business.

 

The appellate panel emphasized deference to the military’s judgment in matters involving national security and ongoing operations, reinforcing the government’s authority to control procurement decisions during active conflicts.

 

Anthropic continues to challenge the designation through multiple legal avenues, with further proceedings expected in both Washington and California courts as the case advances.