Appeals court lets the Pentagon keep Anthropic as a supply-chain risk

A federal appeals court in Washington, DC, ruled 2-1 to uphold one of the designations labeling Anthropic a supply-chain risk for the US Department of Defense. The majority said there was sufficient support for finding that Claude’s continued integration into the department’s systems or those of its contractors presented a national-security risk, also citing restrictions Anthropic builds into the model. The judges rejected Anthropic’s due process and free speech claims.

The decision allows the Pentagon to continue blocking Anthropic and removing its models from the federal government. A similar designation was overturned by a federal judge in San Francisco, but both disputes could take years of appeals to resolve. Anthropic spokesperson Danielle Cohen said the company remains confident in its position and is considering its appeal options.