A federal appeals court ruled 2-1 for the Pentagon, upholding its designation of Anthropic as a national-security supply-chain risk and keeping the company on the military blacklist. The panel temporarily stayed its ruling, preserving Anthropic’s chance to seek further review.
The dispute grew out of a $200 million contract over the Pentagon’s use of Claude on classified systems. The department sought access for any lawful military use, while Anthropic wanted written assurances against use in fully autonomous weapons or domestic mass surveillance.
The majority said the Pentagon had reasonable grounds to fear Anthropic could modify Claude so it could no longer perform functions the department considered contractually permitted and essential. A San Francisco federal judge last month ruled a separate, parallel designation unlawful, finding First Amendment retaliation. Anthropic said it disagreed and was considering further review; the stay leaves it able to seek a rehearing, full-court review or Supreme Court review.
