Anthropic loses appeal over Pentagon's 'supply-chain risk' designation
The D.C. Circuit Court of Appeals upheld the Defense Department's designation of Anthropic as a supply-chain risk, barring DOD employees and contractors from using its products. The label has been in force since March after Anthropic refused to allow its AI to be used for "all lawful purposes." Anthropic said it disagrees and is weighing further appeals.
- D.C. Circuit panel ruled against Anthropic, with two judges backing the Pentagon
- The supply-chain risk designation has been in effect since March 3, 2026
- Anthropic refused DOD's demand to permit use of its AI for all lawful purposes
- Anthropic's revenue is growing about tenfold per year ahead of a planned November IPO
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