{"id":1237,"date":"2026-04-09T04:31:30","date_gmt":"2026-04-09T04:31:30","guid":{"rendered":"https:\/\/www.europesays.com\/ai\/1237\/"},"modified":"2026-04-09T04:31:30","modified_gmt":"2026-04-09T04:31:30","slug":"federal-court-denies-anthropics-motion-to-lift-supply-chain-risk-label","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ai\/1237\/","title":{"rendered":"Federal Court Denies Anthropic\u2019s Motion to Lift \u2018Supply Chain Risk\u2019 Label"},"content":{"rendered":"<p class=\"css-ac37hb evys1bk0\">A panel of federal judges on Wednesday denied a motion from Anthropic to stop the Department of Defense from labeling it a security risk, a setback for the artificial intelligence company in its battle with the Trump administration over how A.I. should be used in warfare.<\/p>\n<p class=\"css-ac37hb evys1bk0\">In a <a class=\"css-yywogo\" href=\"https:\/\/www.courtlistener.com\/docket\/72380208\/01208838678\/anthropic-pbc-v-united-states-department-of-war\/\" title=\"\" rel=\"noopener noreferrer nofollow\" target=\"_blank\">four-page ruling<\/a>, the three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit said Anthropic had \u201cnot satisfied the stringent requirements\u201d for a stay of the security risk label.<\/p>\n<p class=\"css-ac37hb evys1bk0\">\u201cIn our view, the equitable balance here cuts in favor of the government,\u201d the judges wrote, representing one of two federal courts where Anthropic sued the Pentagon. The other is in California.<\/p>\n<p class=\"css-ac37hb evys1bk0\">The ruling is not a final decision, and the case is set to continue. But it was an early win for the Trump administration, which has been fighting with Anthropic in the aftermath of a failed $200 million contract negotiation over the use of A.I. in classified systems.<\/p>\n<p class=\"css-ac37hb evys1bk0\">The Defense Department and Anthropic had disagreed over contract terms related to how the Pentagon could use the company\u2019s A.I., which led Defense Secretary Pete Hegseth to label the start-up a \u201c<a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2026\/03\/05\/technology\/anthropic-supply-chain-risk-defense-department.html\" title=\"\" rel=\"nofollow noopener\" target=\"_blank\">supply chain risk<\/a>.\u201d<\/p>\n<p class=\"css-ac37hb evys1bk0\">That designation is typically applied to foreign companies that pose national security concerns. Being labeled a supply chain risk effectively blacklists a company from doing business with U.S. government entities.<\/p>\n<p class=\"css-ac37hb evys1bk0\">Mr. Hegseth issued orders designating Anthropic such a risk under two different laws. Anthropic then <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2026\/03\/09\/technology\/anthropic-defense-artificial-intelligence-lawsuit.html\" title=\"\" rel=\"nofollow noopener\" target=\"_blank\">filed two lawsuits<\/a> \u2014 one in the District of Columbia court and the other in U.S. District Court for the Northern District of California \u2014 to challenge the label under each of the laws, accusing the Pentagon of using the designation inappropriately to punish the company on ideological grounds.<\/p>\n<p class=\"css-ac37hb evys1bk0\">Last month, the judge in the California court <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2026\/03\/26\/technology\/anthropic-pentagon-risk-injunction.html\" title=\"\" rel=\"nofollow noopener\" target=\"_blank\">ruled in Anthropic\u2019s favor<\/a> and said the A.I. company would not be restricted from continuing with its federal contracts with certain defense-related agencies for now.<\/p>\n<p class=\"css-ac37hb evys1bk0\">Wednesday\u2019s ruling from the District of Columbia court continues to bar Anthropic from new contracts with the Pentagon. The Department of Defense has said it will remove Anthropic\u2019s software from its systems over the next six months.<\/p>\n<p class=\"css-ac37hb evys1bk0\">In its ruling, the panel acknowledged that Anthropic would \u201clikely suffer some degree of irreparable harm.\u201d<\/p>\n<p class=\"css-ac37hb evys1bk0\">Todd Blanche, the acting attorney general, <a class=\"css-yywogo\" href=\"https:\/\/x.com\/dagtoddblanche\/status\/2042007295731622234?s=46\" title=\"\" rel=\"noopener noreferrer nofollow\" target=\"_blank\">wrote on social media<\/a> that the ruling was \u201ca resounding victory for military readiness.\u201d He added, \u201cOur position has been clear from the start \u2014 our military needs full access to Anthropic\u2019s models if its technology is integrated into our sensitive systems.\u201d<\/p>\n<p class=\"css-ac37hb evys1bk0\">\u201cWe\u2019re grateful the court recognized these issues need to be resolved quickly,\u201d a spokeswoman for Anthropic said in a statement. \u201cWhile this case was necessary to protect Anthropic, our customers and our partners, our focus remains on working productively with the government to ensure all Americans benefit from safe, reliable A.I.\u201d<\/p>\n<p class=\"css-ac37hb evys1bk0\">Dario Amodei, the chief executive of Anthropic, has long said A.I. must have limits for safety reasons. During the contract negotiations with the Pentagon, Anthropic wanted limits imposed on its A.I.\u2019s use for domestic surveillance and autonomous weapons, while the Department of Defense argued that no private contractor could tell it how to use technology.<\/p>\n<p class=\"css-ac37hb evys1bk0\">Anthropic, which is based in San Francisco, has argued that the Pentagon\u2019s application of the supply chain risk label not only was a punishment on ideological grounds but also violated its First Amendment rights. Anthropic has said its business was suffering from the designation, and asked the courts for a temporary stay while it argued its cases.<\/p>\n<p class=\"css-ac37hb evys1bk0\">In the California court last month, Judge Rita F. Lin wrote that she agreed that Anthropic was being punished for criticizing the government.<\/p>\n<p class=\"css-ac37hb evys1bk0\">\u201cNothing in the governing statute supports the Orwellian notion that an American company may be branded a potential adversary and saboteur of the U.S. for expressing disagreement with the government,\u201d she wrote.<\/p>\n<p class=\"css-ac37hb evys1bk0\">The different rulings from the courts have created confusion.<\/p>\n<p class=\"css-ac37hb evys1bk0\">\u201cThe Pentagon\u2019s actions and the D.C. Circuit\u2019s ruling create substantial business uncertainty at a time when U.S. companies are competing with global counterparts to lead in A.I.,\u201d Matt Schruers, the chief executive of the Computer and Communications Industry Association, said in a statement.<\/p>\n","protected":false},"excerpt":{"rendered":"A panel of federal judges on Wednesday denied a motion from Anthropic to stop the Department of Defense&hellip;\n","protected":false},"author":2,"featured_media":1238,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[24,1558,1556,25,1555,1559,1554,1553,1557,1560,1562,1561,1552,1563,993,1551],"class_list":{"0":"post-1237","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ai","8":"tag-ai","9":"tag-amodei","10":"tag-anthropic-ai-llc","11":"tag-artificial-intelligence","12":"tag-computers-and-the-internet","13":"tag-dario","14":"tag-decisions-and-verdicts","15":"tag-defense-contracts","16":"tag-defense-department","17":"tag-hegseth","18":"tag-lin","19":"tag-pete","20":"tag-regulation-and-deregulation-of-industry","21":"tag-rita-f","22":"tag-supply-chain","23":"tag-united-states-defense-and-military-forces"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/1237","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/comments?post=1237"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/1237\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media\/1238"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media?parent=1237"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/categories?post=1237"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/tags?post=1237"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}