Appeals court allows Pentagon to label Anthropic a national security risk

Anthropic CEO Dario Amodei Bloomberg/Getty Images The Trump administration can blacklist AI firm Anthropic from all Pentagon contracts, a federal appeals court ruled Friday. The D.C. Circuit Court of Appeals ruled 2-1 in favor of the Defense Department. The decision establishes sweeping authority for the executive branch to tag companies with the "supply chain risk" label. The Trump administration can blacklist AI firm Anthropic from all Pentagon contracts, a federal appeals court ruled Friday, in a decision that expands the executive branch's authority to designate US businesses as national security risks. The D.C. Circuit Court of Appeals ruled 2-1 that the Defense Department had good reason to conclude that the company's artificial intelligence products pose a supply chain risk to the department and its contractors because the company includes code in its models that restricts them from performing certain tasks.