Anthropic seeks appeals court stay of Pentagon supply-chain risk designation

Anthropic seeks appeals court stay of Pentagon supply-chain risk designation

March 12 (Reuters) - Anthropic on Wednesday sought a stay from a U.S. appeals court after the ‌Pentagon said the company was a supply-chain ‌risk, pending a judicial review of the case, adding that the ​designation could cost it billions of dollars in lost revenue.

Reuters

Anthropic's latest request comes after a weeks-long dispute over technology guardrails on the use of Anthropic'sartificial intelligence‌tools by the ⁠U.S. military. Defense Secretary Pete Hegseth labelled the firm a supply-chain risk and barred ⁠the Pentagon and its contractors from using its AI products.

The AI firm separately filed a lawsuit earlier this ​week in ​a California federal court ​to challenge its Pentagon ‌blacklisting.

In a filing with the U.S. Court of Appeals for the District of Columbia Circuit on Wednesday, Anthropic said the Pentagon's supply-chain designation would cause the company "irreparable harm."

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According to Anthropic's court filing, more than 100 ‌enterprise customers have reached out to ​the company about the designation.

"By ​Anthropic's best estimate, ​for 2026, the government's adverse actions risk ‌hundreds of millions, or even ​multiple billions, ​of dollars in lost revenue," lawyers for the AI firm wrote.

The Pentagon did not immediately respond ​to a request ‌for comment outside of regular business hours.

(Reporting by ​Rajveer Singh Pardesi in Bengaluru; Editing by ​Clarence Fernandez and Thomas Derpinghaus)

 

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