A United States appeals court has upheld the Defense Department’s decision to exclude Anthropic from its supply chain, a decision taken when the AI startup refused to remove certain safeguards on its Claude model. The conflict began in February when Anthropic refused Pentagon Secretary Pete Hegseth’s demand to remove restrictions on the use of Claude for fully autonomous lethal weapons and mass domestic surveillance of Americans. The supply chain risk designation , made in March, cancelled Anthropic’s military contracts and barred other Defense Department contractors from using its technology.
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