A US appeals court today approved the Trump administration’s blacklisting of Anthropic technology.
The two judges who ruled against Anthropic were both appointed by Trump and served in the first Trump administration.
Anthropic sued the Trump administration in March after Trump and Hegseth ordered federal agencies to stop using Anthropic’s products and banned defense contractors from doing any business with Anthropic.
Despite the ongoing legal battle, Commerce Secretary Howard Lutnick recently said the Trump administration and Anthropic have patched up their relationship and are “in tune.”
The district court decision found a violation of 10 U.S.C. § 3252, in which supply chain risks are limited to malicious actions by adversaries.
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The article, shortened and in plain language
A US appeals court today approved the Trump administration’s blacklisting of Anthropic technology. Judges decided the US had authority to blacklist Anthropic for withholding certain AI features even if Anthropic had no malicious intent.
Trump and Defense Secretary Pete Hegseth “must determine how best to balance the competing risks,” the court said.
The two judges who ruled against Anthropic were both appointed by Trump and served in the first Trump administration. Judge Gregory Katsas was before deputy counsel to the president, and Judge Neomi Rao served in the Trump administration’s Office of Management and Budget.
Anthropic sued the Trump administration in March after Trump and Hegseth ordered federal agencies to stop using Anthropic’s products and banned defense contractors from doing any business with Anthropic. Anthropic may appeal today’s ruling, either by asking for an en banc review with all of the appeals court judges or by petitioning the Supreme Court.
Despite the ongoing legal battle, Commerce Secretary Howard Lutnick recently said the Trump administration and Anthropic have patched up their relationship and are “in tune.”
A judge in US District Court for the Northern District of California ruled last month that the action was illegal because Anthropic does not meet the definition of a supply-chain risk, which is limited to “the risk that an adversary may sabotage, maliciously introduce unwanted function, or otherwise subvert… a covered system.”
The district court decision found a violation of 10 U.S.C. § 3252, in which supply chain risks are limited to malicious actions by adversaries.
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