Anthropic's bid to kill its Pentagon "risk" label isn't going well in court

Judges Push Back on Anthropic's Appeal

Two of three DC Circuit judges pressed @AnthropicAI's attorney Tuesday over the company's bid to overturn a Pentagon declaration labeling it a supply-chain risk to US national security, Bloomberg reported. The label triggered a government ban on the use of its @claudeai model.

The Department of Defense declared Anthropic a supply-chain risk in early March, meaning that use of the company's technology purportedly threatens US national security. Anthropic is the first American company to receive the designation, which has historically been reserved for foreign adversaries. The label requires defense contractors to certify that they do not use Anthropic's Claude AI models in their work with the military.

A Dispute Over Weapons, Surveillance and Operational Control

Anthropic had demanded its technology not be used in fully autonomous lethal weapons or for the mass surveillance of Americans. Negotiations collapsed in February, with the government seeking to renegotiate and insisting that Anthropic allow military use of Claude without restrictions. Anthropic maintained that its technology should not be used for lethal autonomous weapons and mass domestic surveillance of Americans.

The Pentagon argues the dispute is about operational control, not speech. Department officials say this has always been about the military's ability to use technology legally, without a vendor inserting itself into the chain of command and putting warfighters at risk. Anthropic, for its part, calls the designation retaliation for its AI-safety positions.

The company says its lawsuits are not meant to force the government to work with Anthropic, but to prevent officials from blacklisting companies over policy disagreements. The first lawsuit claims the designation punishes Anthropic for being outspoken about its views on AI policy, including its advocacy for safeguards against its technology being used for mass domestic surveillance or autonomous weapons.

With split decisions across the two courts, Anthropic is excluded from DOD contracts but is able to continue working with other government agencies while litigation plays out. A written ruling from the DC Circuit will follow Tuesday's oral arguments.

Sources:
Anthropic loses appeals court bid to temporarily block Pentagon blacklisting (CNBC)
Anthropic sues Pentagon over rare supply-chain risk label (Axios)
Appeals court rejects Anthropic's bid to temporarily halt Pentagon designation (The Hill)