Abstract:
Anthropic asked a U.S. appeals court on Tuesday to reconsider a ruling that upheld a U.S. Department of Defense decision to designate the artificial intelligence company as a national security supply chain risk due to a dispute over the security safeguards of its technology.

Last month, a U.S. appeals court upheld that finding in a 2-1 vote, agreeing with the U.S. Department of Defense’s view that the company’s security restrictions could jeopardize military operations. Anthropic said the Pentagon's blacklisting of the company has cost it billions of dollars in lost business.
The court's majority opinion found that the Pentagon's response was reasonable after Anthropic refused to allow its artificial intelligence technology to be used in autonomous weapons or mass surveillance systems; the court also rejected the company's claim that it suffered retaliation from the U.S. Department of Defense for its stance on artificial intelligence safety issues.
Anthropic filed a request for rehearing with the U.S. Court of Appeals in Washington, D.C., on Tuesday, arguing that the panel majority misunderstood and distorted a federal law, turning a provision of the law that was "targeted at hostile foreign entities" into one that "presumptively applies to all government contractors."

The court allowed the Pentagon to take action against Anthropic "without any pre-determination process and despite solid evidence that the designation was in fact an act of retaliation for Anthropic's remarks about the safety of artificial intelligence," the company said.
In a separate lawsuit in August, a federal judge in California overturned a similar finding under another law.
Anthropic CEO Dario Amodei has called for regulation of all U.S. cutting-edge artificial intelligence companies, while the Trump administration favors a pro-growth policy approach.
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