DC Circuit upholds Pentagon supply-chain risk label on Anthropic
A federal appeals court in Washington DC declined to overturn one of two Pentagon designations that flagged Anthropic as a national-security supply-chain risk, letting that label stand indefinitely. The ruling leaves in place restrictions ordering removal of Anthropic's Claude models from military and other federal systems, while a separate designation was already struck down by a San Francisco judge earlier this year. Anthropic says it is weighing further appeals, including to a larger DC Circuit panel or the Supreme Court.
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The split outcome across two courts means Anthropic's access to federal and military customers remains legally uncertain for years, since both rulings can still be appealed. Anthropic has said the Pentagon's stance stems from its refusal to let Claude support autonomous weapons or domestic surveillance, while Defense Secretary Pete Hegseth has called that refusal itself a security risk — a dispute over AI companies' control versus government use of their models. The case could set precedent for how far AI vendors can restrict government use of their technology without being cut off from federal contracts.
- A DC appeals court upheld one Pentagon supply-chain risk designation against Anthropic, keeping Claude blocked from some federal systems.
- A separate designation was already voided by a San Francisco federal judge, creating conflicting outcomes across jurisdictions.
- Anthropic says it is considering further appeals, potentially up to the Supreme Court, prolonging the legal fight.
Source: wired.com — Paresh Dave, 2026-09-25
Published there as: “Appeals Court Lets the Pentagon Designate Anthropic a Supply-Chain Risk”
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