US Appeals Court Allows Pentagon Blacklisting of Anthropic to Stand

A federal appeals court in Washington has turned down a request to pause a Defense Department order that bars Anthropic from government contracts and classifies the artificial intelligence company as a national security supply chain risk.

The decision came from the US Court of Appeals for the District of Columbia Circuit, which declined to grant relief while Anthropic's legal challenge proceeds.

Anthropic has argued that the designation has inflicted billions of dollars in lost business and harmed its standing as it prepares for a much-anticipated initial public offering.

The company's lawsuit contests the Pentagon's decision to place it on a supply chain risk list, a move that effectively cuts it off from federal contracting work.

Separately, a judge in California federal court has already blocked the designation in a different legal challenge, leaving the matter to be resolved across two court tracks.

The appeals court's ruling means the Pentagon order remains in effect for now, pending further proceedings.