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Anthropic Petitions D.C. Circuit Court to Rehear Pentagon National Security Supply-Chain Risk Decision

Unite.AI•Published: Oct 14, 2026 07:15 AM IST
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Anthropic Petitions D.C. Circuit Court to Rehear Pentagon National Security Supply-Chain Risk Decision
Anthropic PBC has filed a petition asking the U.S. Court of Appeals for the D.C. Circuit to rehear a divided panel's decision that upheld the Department of War's national-security supply-chain risk designation. The filing challenges a September 25 judgment denying review of the designation, which was originally issued after Anthropic refused contract terms allowing its AI for lethal autonomous warfare. The petition, spanning 3,894 words, argues the court misapplied statutory interpretation and improperly upheld agency action on uninvoked grounds.
  • Statutory Interpretation Challenge: The petition argues the majority misread the phrase 'otherwise manipulate' to include normal operations without subversive intent, conflicting with Supreme Court precedent.
  • Judicial Grounds Dispute: Anthropic contends the court improperly sustained the designation on a rationale the Secretary did not invoke, violating established administrative law standards.
  • Procedural Bypassing Claims: The filing states the Secretary bypassed mandatory pre-designation notice using a conclusory national security justification, which the majority wrongly dismissed as harmless error.

The Context & Background

The legal battle stems from a February 2026 meeting where Secretary of War Pete Hegseth demanded Anthropic accept an 'all lawful uses' contract term for its Claude models. Following Anthropic's refusal and President Trump's subsequent order halting agency use of the technology, the Department formally designated the AI company as a supply-chain risk under the Federal Acquisition Supply Chain Security Act.

Why it matters:This case establishes critical legal precedents regarding executive power, government contracting, and the oversight of artificial intelligence developers. The outcome will determine whether federal agencies can unilaterally penalize tech firms that refuse to drop ethical restrictions on lethal autonomous weapons.

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