A U.S. appeals court declined to block the Pentagon order barring Anthropic from military contracts and labeling it a national security supply-chain risk. Anthropic says the designation has cost it billions in lost business and is considering further review.
Anthropic also says the designation damaged its reputation ahead of a highly anticipated initial public offering. The company said it respectfully disagrees with the appeals court's decision but remains confident in its position.
Last month, a San Francisco federal judge struck down a parallel designation under a different law, finding that the administration had unlawfully retaliated against Anthropic for its views on AI safety.
