Anthropic asks appeals court to rehear fight over security risk- Moneycontrol.com
Anthropic argued the majority incorrectly interpreted the law by allowing the Defense Department to take action “without any pre-designation process and despite straightforward evidence the designation was retaliation for Anthropic's speech about AI safety.”
October 14, 2026 / 07:22 IST
Anthropic
Anthropic PBC urged the federal appeals court in Washington to revisit its decision upholding the Trump administration’s designation of the artificial intelligence company as a supply-chain risk to US national security.
The company on Tuesday asked the full appeals court to review a September 25 decision handed down by a three-judge panel in a 2-1 ruling. Anthropic argued the majority incorrectly interpreted the law by allowing the Defense Department to take action “without any pre-designation process and despite straightforward evidence the designation was retaliation for Anthropic's speech about AI safety.”
The legal fight between Anthropic and the administration carries high stakes. Courts are deciding whether the federal government or private companies get to control safety guardrails for AI technology at a critical juncture in its development. US-based developers are racing to deliver the most advanced AI models and prove to investors that the technology can turn a profit.
Anthropic’s public sparring with the Trump administration began when contract negotiations over the use of the company’s AI technology by the military fell apart earlier this year.
The company had sought assurances that its technology would not be used for mass surveillance of Americans or autonomous weapons deployment. But the government said it could not accept any restrictions on its use of the tech due to national security concerns.
The Pentagon notified Anthropic in March that the company and its products had been designated as a risk to the US supply chain and all federal agencies were required to withdraw directives related to the firm. Such risk designations are typically reserved for companies from countries that the US views as adversaries.
Anthropic filed two lawsuits against the administration — one in California targeting the Pentagon’s directive for federal agencies to cease working with the company and another in the District of Columbia Circuit Court of Appeals, challenging the legality of the risk designation.
Anthropic prevailed in San Francisco, when US District Judge Rita F. Lin in August ordered the administration to lift its ban on federal agencies using Anthropic’s technology. She stressed that the Pentagon’s actions appeared to be motivated by retaliation, rather than legitimate security concerns.
But in the Washington case, a three-judge panel ruled on September 25 that the administration’s designation was lawful.
Writing for the majority, Judge Gregory Katsas said the Pentagon “reasonably feared that Anthropic might manipulate Claude’s design to prevent it from performing national-security functions that the Department deems contractually authorized and necessary.”
The case is Anthropic v. US Department of War, 26-01049, US Court of Appeals, District of Columbia Circuit (Washington).
Bloomberg
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