A federal appeals court in Washington, D.C., has declined to block the Pentagon’s decision to designate Anthropic as a national security supply-chain risk.
The ruling represents an interim victory for the administration of Donald Trump, although it does not constitute a final judgment in the case.
Anthropic, the developer of the Claude AI assistant, is challenging the designation, arguing that Defense Secretary Pete Hegseth exceeded his authority.
The company said the designation could result in significant financial losses by barring it from Pentagon contracts and potentially triggering wider government restrictions.
Anthropic has filed multiple lawsuits, alleging violations of its constitutional rights, including free speech and due process. It claims the designation was issued without sufficient evidence and in retaliation for its refusal to relax safety restrictions on its AI systems.
A separate ruling by a California federal judge previously blocked one of the Pentagon’s orders, citing potential unlawful retaliation.
The Justice Department has defended the designation, stating that it was based on contractual considerations and concerns over operational risks.
The case highlights growing tensions between government agencies and AI companies over the use of advanced technologies in military and surveillance applications.
