Anthropic Supply-Chain Risk Label Should Stay In Place, Appeals Court Says
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Anthropic Supply-Chain Risk Label Should Stay In Place, Appeals Court Says
""Granting a stay would force the United States military to prolong its dealings with an unwanted vendor of critical AI services in the middle of a significant ongoing military conflict," the three-judge appellate panel wrote on Wednesday in what they described as an unprecedented case."
"The San Francisco judge had found that the Department of Defense likely acted in bad faith against Anthropic, driven by frustration over the AI company's proposed limits on how its technology could be used and its public criticism of those restrictions."
A US appeals court in Washington, DC ruled that Anthropic did not meet the requirements to lose its supply-chain risk designation imposed by the Pentagon. This ruling conflicts with a prior decision from a San Francisco court. Anthropic is the first US company sanctioned under two supply-chain laws typically aimed at foreign businesses. The appellate panel emphasized the importance of military operations over potential financial harm to Anthropic, while the San Francisco judge suggested the Department of Defense acted in bad faith against the company.
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