Appeals Court Backs Pentagon Decision to Keep Anthropic on Security Risk Blacklist

The court said Claude’s restrictions had already stopped it from completing tasks requested by government users on more than one occasion.
The Pentagon had used Claude in classified and sensitive military systems; reports said it was used during the January operation that captured and deposed Venezuelan leader Nicolas Maduro.
The designation was an unusual use of national-security authority against a U.S. company, which is typically reserved for foreign adversaries.
The ruling may broaden the executive branch’s power to designate U.S. businesses as national-security risks, according to the Associated Press report carried by Politico.
A federal appeals court in Washington upheld the Pentagon's blacklist of Anthropic on Thursday, ruling 2-1 that the AI company poses a national-security risk. The New York Times reports that the court found Claude's restrictions on military use — including refusal to power fully autonomous lethal weapons — created enough uncertainty to justify the designation. The ruling cancels Anthropic's military contracts and bars Pentagon contractors from using its technology.
Anthropic opposed the Pentagon's demand for unrestricted access to Claude, citing concerns about autonomous weapons and mass surveillance. The Washington Post notes the court rejected the company's due-process and First Amendment claims, finding it received adequate notice and a chance to respond. The decision conflicts with a separate California ruling that found a broader AI company ban unlawful.
The court found that Anthropic's ethical guardrails had practical consequences. Punchbowl News reports Claude's restrictions stopped it from completing tasks requested by Pentagon users on more than one occasion. The Pentagon had already deployed Claude in classified and sensitive military systems before the blacklist took effect, according to reports that it was used during the January operation that captured Venezuelan leader Nicolas Maduro.
The Pentagon's move marks a rare deployment of national-security authority against an American firm. The Epoch Times reports the designation is typically reserved for foreign adversaries, making this case an unusual expansion of executive power. The court's decision may broaden how the government uses supply-chain risk authority to target domestic businesses over policy disputes rather than traditional security threats.
The appeals court ruling contradicts a separate federal court decision in California that found a broader administration ban on AI companies unlawful. Anthropic says it is considering further legal review, according to Punchbowl News. The split decision highlights growing tensions between Pentagon demands for unrestricted AI access and tech companies' concerns about autonomous weapons and mass surveillance applications.
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