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

A federal appeals court in Washington, D.C., has upheld the Pentagon’s decision to classify Anthropic as a supply chain risk, in a setback for the AI company’s challenge to the Trump administration. The ruling confirms a Department of Defense action that prevents the U.S. military from using Anthropic’s Claude models and bars defense contractors from using them in work tied to the agency. Anthropic had argued that the designation was improper and unconstitutional. In March, the Pentagon said Anthropic posed a national security risk after talks over how the military could use its AI systems broke down. The company has said it disagrees with the ruling and is considering further appeals, including rehearing requests or a possible Supreme Court petition.