Pentagon's Anthropic Ban Upheld by US Appeals Court

A US appeals court has upheld the Pentagon's decision to exclude artificial intelligence company Anthropic from its supply chain after the company declined to remove certain safeguards on its Claude AI model. This ruling intensifies an ongoing dispute between the US Department of Defense and Anthropic regarding the use of AI for military and domestic surveillance.

The conflict began in February when US Defence Secretary Pete Hegseth demanded the removal of restrictions on Claude for fully autonomous lethal weapons and mass surveillance of Americans. Following this, the Pentagon designated Anthropic as a supply-chain risk in March, resulting in the cancellation of its military contracts and preventing other contractors from utilizing its technology.

In response, the military sought alternatives, signing agreements with competitors like OpenAI and xAI. Despite the legal challenges, Anthropic remains a significant player in the AI industry, valued at nearly $1 trillion and preparing for a major initial public offering.

The ruling has also created tensions with the White House, as Anthropic's CEO Dario Amodei has expressed concerns about advanced AI dangers, which President Donald Trump dismissed.