Tag: Pentagon

  • Court Backs Pentagon’s Supply Chain Risk Designation for Anthropic’s Claude AI

    Court Backs Pentagon’s Supply Chain Risk Designation for Anthropic’s Claude AI

    A US federal appeals court has upheld the Pentagon’s decision to designate AI company Anthropic as a supply-chain risk, enabling the government to exclude the company’s Claude AI models from Pentagon systems and contractor work. The 2-1 ruling from the US Court of Appeals for the District of Columbia Circuit, issued on September 25, stemmed from Anthropic’s refusal to lift contractual restrictions that limit Claude’s use for lethal autonomous warfare and domestic surveillance.

    How FASCSA Became Central to the Dispute

    The case hinges on the Federal Acquisition Supply Chain Security Act of 2018 (FASCSA), which grants the government authority to restrict technology deemed a supply-chain risk. The appeals court majority interpreted the law broadly, concluding that the risk does not require the person or company to be a foreign adversary or act with malicious intent. Instead, the judges found that Anthropic’s usage restrictions could qualify because the Pentagon feared the company might prevent Claude from performing authorized national-security functions.

    Anthropic’s AI Safeguards at the Center

    Anthropic had sought to maintain limits preventing Claude from being used for fully autonomous weapons and mass domestic surveillance. The company challenged the Pentagon’s designation as unlawful and unconstitutional, but the appeals court rejected those arguments, stating the government had not exceeded its authority under the supply-chain provision. However, the ruling does not automatically blacklist every AI company with ethical restrictions—it applies specifically to Anthropic’s designation and the Pentagon’s concerns about Claude’s integration into its information systems.

    Dissent Raises Questions Over the Law

    Judge Karen Henderson dissented, arguing that the statutory language should be read in the context of actions like deliberately disrupting or compromising technology already within the federal supply chain. This ruling follows a separate August decision in which a California federal judge blocked another Pentagon designation involving Anthropic, creating two distinct legal tracks around the same broader dispute. The latest decision leaves Anthropic’s FASCSA designation intact and marks a significant legal development in the ongoing debate over how government agencies can regulate and procure advanced AI systems.

  • Australia Summons OpenAI and Anthropic CEOs to Testify on AI Oversight

    Australia Summons OpenAI and Anthropic CEOs to Testify on AI Oversight

    Australian lawmakers have asked OpenAI CEO Sam Altman and Anthropic CEO Dario Amodei to testify before a Senate inquiry examining artificial intelligence, according to announcements made Sunday. The requests follow disclosures that an OpenAI agent accessed Australia’s Medicare portal in June.

    The public hearing is scheduled for Thursday in Canberra. Senator Sarah Hanson-Young chairs the inquiry, which is reviewing AI and data centers, including safety, data transparency, and water and energy consumption.

    Why Australian lawmakers want the executives

    Hanson-Young said Altman should answer questions about the OpenAI agent’s access to Australian government websites. She also called on both executives to explain how the industry should be regulated. The requests invite Altman and Amodei to attend; neither company had publicly responded when the requests were announced.

    Prime Minister Anthony Albanese called the Medicare incident “unacceptable,” saying the agent accessed both public and nonpublic information on the portal. OpenAI said it learned of the activity in August and found no evidence that patient records were accessed. The company described the activity as unintentional.

    Anthropic request follows U.S. court ruling

    The request for Amodei came two days after a federal appeals court in Washington, D.C., upheld the Pentagon’s decision to designate Anthropic as a supply chain risk. The U.S. Court of Appeals for the District of Columbia Circuit ruled 2-1 in the Pentagon’s favor on Friday.

    The decision allows the Defense Department to continue removing Anthropic’s Claude models from its systems and to bar contractors from using Anthropic products for department work. At issue are Anthropic’s restrictions on Claude’s use for autonomous weapons and mass surveillance. The Pentagon argued that those limits could interfere with military tasks.

    Anthropic has defended its safeguards, saying AI is not reliable enough for autonomous weapons and opposing its use for domestic surveillance. Writing for the majority, Judge Gregory Katsas said the Pentagon had “ample support” for its decision and reasonably feared that Anthropic could change Claude in ways that would prevent it from carrying out tasks the military considered authorized and necessary. Judge Neomi Rao joined the opinion; Judge Karen LeCraft Henderson dissented.

    Anthropic said it “respectfully disagrees” with the ruling and is considering further review. Pentagon spokesman Sean Parnell said the decision validated the department’s position. The appeals court ruling applies to Defense Department work, not to Anthropic’s use across the entire federal government.

    California ruling reached a different conclusion

    The D.C. Circuit decision followed a separate case in San Francisco involving another Pentagon designation. In August, U.S. District Judge Rita Lin found that the government had unlawfully retaliated against Anthropic for its views on AI safety and had denied the company required legal protections.

    The D.C. Circuit majority said it had “no quarrel” with the California court’s conclusions. Its judges ruled that the law before them did not require proof that Anthropic acted with a bad motive. Anthropic cited the California ruling in its response to Friday’s decision and said it remained confident in its position.

    What the Senate inquiry is examining

    The Australian inquiry is looking at AI and data centers, with a focus on safety, transparency, and resource use. The request for testimony puts two of the world’s most prominent AI executives at the center of that debate as governments weigh how to regulate the technology.

  • Oracle Lands $7 Billion Pentagon Software Contract to Streamline Military IT Procurement

    Oracle Lands $7 Billion Pentagon Software Contract to Streamline Military IT Procurement

    Oracle has secured a Pentagon enterprise software agreement valued at up to $6.99 billion over a potential 10-year period. The contract consolidates on-premises software licenses, maintenance, and consulting services across U.S. military branches, intelligence agencies, and the Coast Guard, aiming to centralize procurement and reduce costs.

    Pentagon Consolidates Oracle Software Contracts

    The Department of the Navy negotiated the Enterprise Software Agreement on behalf of the broader Defense Department. The initial five-year ordering period carries a base value of $3.31 billion, with an additional five-year option that could raise the total to $6.99 billion. Under the agreement, approved agencies and contractors can purchase Oracle commercial software and services through a single contract, primarily supporting Oracle products operating in government-owned data centers. This includes perpetual licenses, subscription licenses, software maintenance, and consulting services.

    Previously, military branches and intelligence agencies managed many Oracle contracts separately, leading to inconsistent pricing, standards, and purchasing schedules. The new framework provides the Pentagon with a centralized method for ordering and managing these products.

    Agreement Targets $441 Million in Savings

    Pentagon Chief Information Officer Kirsten Davies stated that the centralized approach should reduce redundant spending and improve access to Oracle systems. “By fundamentally improving how we procure on-premises Oracle capabilities, we are driving at least $441 million in taxpayer savings while rapidly and effectively serving our warfighters,” Davies said.

    The Defense Department expects the agreement to provide clearer records of software use and spending, reduce the number of separate negotiations required across military services, and allow agencies to use the same purchasing terms rather than arranging individual agreements.

    The Oracle contract follows a similar large software consolidation deal with Microsoft. In May, the Pentagon reached a five-year agreement valued at up to $9.69 billion, which also combined software licenses across military branches, intelligence agencies, and the Coast Guard. Together, these agreements are part of the Pentagon’s effort to replace separate software contracts with department-wide arrangements to control costs and accelerate access to approved technology.

    Oracle Expands Defense Software Business

    The contract gives Oracle a long-term route for selling database software and other enterprise products to U.S. defense agencies. Oracle has worked with government customers for decades, with the Central Intelligence Agency among its earliest clients. However, the $6.99 billion figure represents the contract’s maximum possible value rather than guaranteed revenue; agencies must place orders through the contract before Oracle records sales, and the Pentagon must exercise the five-year extension for the agreement to reach its full stated value.

    Oracle shares gained about 2% to 3% in trading after the announcement. The contract arrived as investors continue to assess Oracle’s spending on artificial intelligence data centers and cloud infrastructure. Meanwhile, Oracle has expanded its work with the Defense Department beyond traditional database software. In May, the company joined other technology providers in an agreement to deploy artificial intelligence tools on classified military networks. The latest contract focuses mainly on centralized access to Oracle’s commercial products and on-premises systems.