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


FILE PHOTO: The Pentagon logo is seen behind the podium in the briefing room at the Pentagon in Arlington, Virginia, U.S., January 8, 2020. REUTERS/Al Drago/File Photo

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.

Anthropic's latest request ⁠comes after a weeks-long ⁠dispute over technology guardrails on the use of Anthropic's artificial ⁠intelligence ‌tools 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 Pentagon declined to comment ⁠on the ​ongoing litigation.

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."

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.

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

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