U.S. appeals court upholds designation of Anthropic as supply chain risk

A U.S. appeals court upheld the Pentagon’s designation of Anthropic as a supply-chain risk, rejecting the company’s claim that the Defense Department’s ban on its Claude models was arbitrary or unconstitutional. The 2-1 decision, written by Judge Gregory Katsas and joined by Judge Neomi Rao, affirmed that integrating Claude into DoD systems posed a statutorily covered national-security risk. The ruling allows the court to delay enforcement while Anthropic petitions for rehearing or en-ban-rehearing, and it could seek Supreme Court review.