US appeals court upholds Pentagon's blacklisting of Anthropic

A ​federal appeals court on Friday declined to block a Defense Department ‌order blacklisting Anthropic from military contracts and deeming the AI startup a national security risk.

The ruling from the US ‌Court of Appeals for the District of Columbia Circuit ‌came in a lawsuit by Anthropic challenging its designation by the Pentagon as a national security supply chain risk, which ⁠the ​startup says ⁠has cost it billions of dollars in lost business and damaged ⁠its reputation ahead of a highly anticipated initial public offering. Anthropic ​said in a statement that it respectfully ⁠disagrees with the decision but remains confident in its position and ⁠is considering ​its options, including further judicial review.

A federal judge in San Francisco last month struck ⁠down a parallel designation under a different law, finding the administration ⁠had unlawfully ⁠retaliated against Anthropic for its views on AI safety.