Key facts
- A US appeals court approved the Trump administration's blacklisting of Anthropic.
- The ruling allows the US to blacklist Anthropic for withholding certain AI features.
- The US Court of Appeals for the District of Columbia Circuit issued a 2-1 ruling.
- Judges cited concerns that overly constrained AI models could cause military operations to fail.
- Anthropic may appeal the ruling to an en banc review or the Supreme Court.
- A separate federal court had previously ruled the government's parallel designation unlawful.
A US appeals court has upheld the Trump administration's decision to blacklist AI company Anthropic, allowing federal agencies to cease using its products and prohibiting defense contractors from engaging in business with the firm. The ruling, issued by a 2-1 vote from the US Court of Appeals for the District of Columbia Circuit, addresses concerns that overly restricted AI models could jeopardize military operations.
The court stated that the US has the authority to blacklist Anthropic for withholding certain AI features, even without malicious intent. Judges Gregory Katsas and Neomi Rao, both appointed by Trump, formed the majority, while Judge Karen Henderson dissented. The decision contrasts with a previous ruling by a US District Court in California, which had deemed the action unlawful because Anthropic did not meet the definition of a supply-chain risk limited to adversarial sabotage.
Anthropic had sued the Trump administration in March after the order was issued. The company expressed disagreement with the appeals court's decision and is considering further review options. Despite the legal challenges, Commerce Secretary Howard Lutnick recently indicated that the relationship between the Trump administration and Anthropic has improved.