U.S. appeals court upholds designation of Anthropic as supply chain risk

The U.S. Court of Appeals for the District of Columbia Circuit has upheld the designation of Anthropic, an artificial intelligence research lab, as a supply chain risk due to its ties to China. The designation was made by the Defense Department's Defense Innovation Unit (DIU) in 2022. The court's decision means that Anthropic will not be eligible for a $20 million contract with the Defense Department. A three-judge panel ruled that the DIU's decision was not arbitrary or capricious and that it was within the agency's authority to designate Anthropic as a supply chain risk.