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Anthropic Seeks Court Rehearing Over Pentagon’s Security-Risk Designation

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Anthropic has asked a US appeals court to reconsider its decision upholding the Pentagon’s designation of the artificial intelligence company as a national security supply chain risk, escalating a dispute over how its technology can be used by the military.

The request, filed on Tuesday, October 13, follows a September ruling in which the appeals court upheld the designation in a 2-1 decision. The Pentagon argued that restrictions Anthropic places on its AI systems could interfere with military operations.

The dispute centres on Anthropic’s refusal to permit its technology to be used for mass surveillance of Americans or in fully autonomous weapons systems. The company maintains that its safety restrictions are necessary and that the government’s decision unfairly penalises it for its position on AI safety.

In its latest petition, Anthropic argued that the appeals court had misinterpreted federal law by applying a provision intended to address threats from hostile foreign actors to a domestic technology company.

The company also contends that the designation was imposed without adequate procedural safeguards and amounted to retaliation for its public position on AI safety.

Anthropic has said the Pentagon’s action has cost it billions of dollars in lost business. In a separate legal challenge, a federal judge in California struck down a related designation under a different law in August.

The case highlights growing tensions between the US government and AI developers over military applications, corporate safety policies and national security.

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