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


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A federal appeals court in Washington, D.C., on Friday upheld the Pentagon’s blacklisting of Anthropic, a blow to the artificial intelligence company in its months-long battle with the Trump administration. 

In a 2-1 decision, Circuit Judge Gregory Katsas and Circuit Judge Neomi Rao rejected Anthropic’s argument that the Department of Defense’s decision to designate the company a supply chain risk was arbitrary, unauthorized and unconstitutional. Circuit Judge Karen LeCraft Henderson dissented.

“The Department had ample support for its conclusion that the continued integration of Claude into the Department’s information systems, by the Department or its contractors, presented a statutorily covered national-security risk,” Katsas wrote in the opinion for the court.

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