A divided panel of appeals court judges has sided with the Trump administration, allowing the Pentagon to designate AI lab Anthropic as a supply-chain risk, according to WIRED. The ruling comes after Anthropic challenged the designation, arguing it violated multiple rights.
According to WIRED, Anthropic had contested the Pentagon’s authority to make such a designation, raising constitutional and procedural concerns. However, the appeals court panel ultimately ruled in favor of the government’s position, upholding the Pentagon’s decision. The panel was divided, indicating at least one judge disagreed with the majority opinion.
The designation as a supply-chain risk could have significant implications for Anthropic’s business operations and government contracts. The ruling represents a notable development in the ongoing tension between AI companies and government oversight, particularly as federal agencies seek greater control over emerging AI technologies that may have national security implications.