Court upholds Pentagon's ban on Anthropic for supply risk
A federal appeals court has sided with the Pentagon, letting it keep Anthropic — the AI company behind Claude — blacklisted from military procurement. Two out of three judges agreed the Defense Department had enough reason to call Anthropic's products a supply chain risk, mainly because its code blocks certain military uses. Anthropic argues this move could hurt its business by hundreds of millions of dollars.
- 2-1 decision backs Pentagon's ban on Anthropic
- Court cites code restricting certain AI tasks as concern
- Anthropic could lose hundreds of millions in revenue
- Judges see 'ample support' for national security risk label
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