The Pentagon won a 2-1 ruling to ban Anthropic from defense work.
A US appeals court in Washington ruled on 25 September that the Pentagon may label Anthropic a "supply chain risk", the Associated Press reported.
The label lets the Defense Department keep removing Claude, Anthropic's AI model, from its systems and bar contractors from using it on Defense work.
The dispute began over how the models may be used. The Pentagon wanted them for all lawful purposes. Anthropic wanted assurance they would not run fully autonomous weapons or domestic mass surveillance, AP reported.
"The Department reasonably feared that Anthropic might manipulate Claude's design to prevent it from performing national-security functions," Judge Gregory Katsas wrote for the majority. Judge Karen LeCraft Henderson dissented.
Anthropic said: "We respectfully disagree with the court's decision. Another federal court has already held the government's parallel designation unlawful." The company says it is considering all options, including further review. The court delayed the ruling's effect so Anthropic can ask for a rehearing, CNBC reported.
The ruling does not bar Anthropic from the rest of the federal government.
If your largest customer banned one of your AI suppliers tomorrow, how long would it take to find every place it runs?
Sources
Our file on Anthropic
- 7 Oct
Analysts said Claude subscribers use 42% of Anthropic's computing. They pay 10% of sales.
- 6 Oct
Microsoft planned $1 billion for employees using Claude. Then it cut over a third.
- 3 Oct
Epic stopped building new products for six weeks. An AI model found the flaws.
- 1 Oct
Anthropic said robots could do most physical tasks. They're cost-competitive on 0.3%.
- 1 Oct
Trump ordered federal agencies to rename AI. The new word is Super Intelligence.
For your next steering committee
- 1Ask which exit clauses your largest software and services contracts carry, and when each can be used.
- 2Ask what leaving would cost, in money and in months.
- 3Ask who reads the contract when a dispute starts, and whether they have read it before.
Issue 01 of the ERP LEADERS brief puts a timeline, the three-number review and six questions on one page. Read issue 01
Welcome back. · Issue 01
