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Anthropic has lost its latest legal challenge against the US Pentagon, which can continue to designate the AI company as a supply chain risk. A 2-1 ruling by a federal appeals court allows the Defence Department to remove Anthropic’s Claude models from its systems and restrict the company’s products for defence work, deepening a broader dispute over AI use.
In the latest twist in Anthropic’s dispute with the Pentagon, a federal appeals court on Friday rejected the AI lab’s challenge to the government’s labelling of it as a supply chain risk. The decision allows the Pentagon to continue to remove Anthropic’s Claude models from its systems and bar the use of its products for Defence Department work. Judges from the US Court of Appeals for the District of Columbia Circuit ruled 2-1 in the Pentagon’s favour. The dispute between the AI company and the government broke out in February when President Donald Trump and Defence Secretary Pete Hegseth accused Anthropic of endangering national security and designated the company a supply chain risk. Anthropic CEO Dario Amodei refused to back down over concerns the company’s products could be used for mass surveillance or autonomous armed drones.
“The Department reasonably feared that Anthropic might manipulate Claude’s design to prevent it from performing national-security functions that the Department deems contractually authorised and necessary,” Judge Gregory G. Katsas wrote in the majority opinion. The ruling is separate from one a federal judge made this summer in California, where she found the Pentagon acted illegally by punishing the AI company for its criticism of the Pentagon’s views on AI use.
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