Pentagon's risk label for Anthropic upheld, hurting IPO plans

a federal appeals court in washington upheld the pentagon's decision to bar ai startup anthropic from military contracts, ruling 2-1 that the pentagon was right to classify anthropic as a national security supply chain risk. the case stems from anthropic's refusal to allow its technology to be used for autonomous weapons and mass surveillance. the designation has cost anthropic billions, according to the company, and is hurting its planned ipo. us intelligence agencies are heavy users of anthropic's ai models, raising questions about the supply chain risk label.