DC Circuit Upholds Pentagon's Designation of Anthropic as a Supply‑Chain Risk

A federal appeals court has affirmed the Pentagon's decision to label AI laboratory Anthropic as a supply‑chain risk, allowing the U.S. Defense Department to continue removing Claude models from its systems and prohibiting contractors from using the company's technologies in defense work. The ruling clarifies the legal basis for the designation and underscores the Department's concerns about national security, while Anthropic maintains its stance that its safeguards are ethically sound. The case follows earlier judicial scrutiny in California and highlights a broader debate over government regulation of artificial intelligence.