Ruling Gives Trump Administration Broad Power To Blacklist AI Firms Over Security Risks
By CU Today Staff —
WASHINGTON—The Trump Administration can blacklist artificial intelligence company Anthropic from Pentagon contracts, a federal appeals court ruled Friday, handing the executive branch broad authority to designate U.S. companies as national-security supply-chain risks.
The U.S. Court of Appeals for the D.C. Circuit ruled 2-1 that the Defense Department “had ample support for its conclusion” that Anthropic posed a supply-chain risk because the company builds restrictions into its AI models that prevent certain uses, according to POLITICO. Anthropic has said it will not permit its technology to be used for autonomous weapons or mass domestic surveillance. The court said the Pentagon’s concerns fell within the definition of a supply-chain risk under the federal statute at issue.
The decision is the first appellate interpretation of the executive branch’s authority under the 2018 national-security law used against Anthropic, according to POLITICO. Judges Gregory Katsas and Neomi Rao formed the majority, while Judge Karen Henderson dissented. Anthropic spokesperson Danielle Cohen said the company disagrees with the ruling and is considering its options, including further review.
The ruling comes after a federal judge in California last month sided with Anthropic in a separate challenge involving a different military procurement law. The D.C. Circuit majority said the statutes differ significantly: the law before it permits action when there is a risk that “any person” may sabotage a product, while the other statute addresses risks that “an adversary” may do so. The majority said Anthropic did not need to have a “bad motive” for the broader 2018 law to apply; Henderson argued in dissent that the statute's history indicates Congress intended it to address malicious actors and intentionally subversive conduct.
Originally reported by CU Today.