Washington – A DC Appeals court has rejected Anthropic’s motion to block the Pentagon from designating the company as a supply chain risk following a dispute over how the Pentagon may use its AI technology. Instead, it will expedite a full hearing on the issue. The ruling contrasts with a California federal court, which last week likely raised constitutional concerns.
The Computer & Communications Industry Association joined with ITI, SIIA and TechNet in amicus briefs filed in California and Washington DC, pointing out the dangers to the U.S. economy and all companies if a government agency is able to use a tool normally reserved for foreign adversaries as potential retaliation following a dispute. In late March, a federal judge in California cited the tech industry’s amicus brief in her ruling granting Anthropic a preliminary injunction.
The following can be attributed to CCIA President & CEO Matt Schruers:
“The Pentagon’s means of blacklisting Anthropic without following typical procurement procedures had raised concerns across the technology sector. The DC Circuit’s denial will prolong ambiguities regarding whether political considerations can drive federal procurement.
“The Pentagon’s actions and the DC Circuit’s ruling create substantial business uncertainty at a time when US companies are competing with global counterparts to lead in AI.”
“Designating a company as a supply chain risk is a tool normally reserved for foreign adversaries, and should be used with discretion and proper procedure. It is risky to US innovation and competition to allow the government to unfairly discourage doing business with a US AI company as it competes with foreign AI companies.”
