Appeals court denies Anthropic’s bid to block Pentagon blacklisting amid ongoing legal dispute over supply chain risk designation
A federal appeals court denied Anthropic’s request to temporarily block the Department of Defense’s (DOD) blacklisting of the artificial intelligence company.The DOD designated Anthropic a supply chain risk in March, asserting it posed a threat to national security.
Legal challenges continue
In a separate case last month, a judge in San Francisco issued a preliminary injunction that prevents the Trump administration from enforcing a ban on Anthropic’s Claude model.
The latest appeals court ruling noted the government’s interest in managing vital AI technology during military conflicts outweighed Anthropic’s financial concerns.
Anthropic remains excluded from DOD contracts but can engage with other government agencies while litigation proceeds.
Defense contractors are barred from using Claude with the DOD but may utilise it in other contexts.
Anthropic contends the Pentagon’s actions are unconstitutional and a retaliatory measure against the company.
The court acknowledged that Anthropic faces potential irreparable harm but characterised its concerns as mainly financial.
Despite claims of First Amendment violations, the ruling found no evidence of speech being suppressed during the legal proceedings.
The appeals court urged prompt resolution of the case due to the potential harm to Anthropic.
An Anthropic spokesperson expressed gratitude for the court’s recognition of the need for swift resolution and confidence that the courts will deem the DOD’s actions unlawful.
In response, U.S. Attorney General Todd Blanche declared the decision a victory for military readiness, asserting that military authority rests with the government, not a tech company.
