A federal appeals court upholds the Pentagon’s decision to designate AI company Anthropic as a supply chain risk, rejecting the firm’s challenge to the designation. The court decision keeps the Pentagon’s restrictions in place, preventing military organizations and contractors from using Anthropic’s Claude models.

Multiple outlets report the ruling is from the D.C. Circuit Court of Appeals and was decided by a divided panel, with the decision described as 2-1. ABC News and CNA similarly say the court declines to block the Pentagon. The Hill and other reports characterize the court as finding the Pentagon sufficiently supported its national security rationale, stating it had “ample support” for its belief. Wired and Investing.com frame the outcome as an appeals court allowing the Pentagon to apply the supply chain risk label.

While the articles focus on different aspects—some emphasizing the panel’s narrow split and others the legal reasoning and the specific effect on Claude usage—they all describe the same result: the appeals court denies Anthropic relief and maintains the blacklist designation pending further proceedings.