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 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.

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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