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Artificial Intelligence

Appeals court upholds Pentagon ban on Anthropic

A Washington appeals court upheld the Pentagon’s ban on Anthropic in a 2-1 ruling, leaving the company to pursue rehearing options after a separate federal court struck down a related designation.

CNBC

A federal appeals court in Washington upheld the Defence Department’s ban on Anthropic on Friday. The 2-1 ruling rejected the company’s claim that the action was unauthorised, arbitrary and unconstitutional.

Judge Gregory Katsas, joined by Judge Neomi Rao, said the department had enough support to conclude that Claude’s continued use in its systems created a national-security risk covered by statute. Judge Karen LeCraft Henderson dissented.

The department had labelled Anthropic a supply-chain risk in March, which stopped the military from using the company’s models and blocked defence contractors from using them for work with the department. Anthropic had also signed a $200 million contract with the Pentagon in July 2025, but later talks over deployment on the GenAI.mil platform broke down.

Anthropic said it disagreed with the decision and was considering further steps, including rehearing and Supreme Court review. The panel delayed the ruling taking effect while those options remained open.

Named in this story

People

Judge Gregory Katsas
wrote the majority opinion
Judge Neomi Rao
joined the majority opinion
Judge Karen LeCraft Henderson
dissented
President Donald Trump
was part of the administration Anthropic sued and criticised Dario Amodei
Pete Hegseth
the defence secretary who accused Anthropic of trying to seize veto power over military decisions
Dario Amodei
Anthropic’s chief executive whom Trump criticised

Companies

Anthropic
challenged the Pentagon’s blacklisting of its models

Governments and agencies

Department of Defense
labelled Anthropic a supply chain risk and barred use of Claude
U.S. Court of Appeals for the District of Columbia
upheld the blacklisting in a 2-1 ruling
U.S. District Court in San Francisco
heard Anthropic’s challenge and later ruled one designation unlawful
Trump administration
was sued by Anthropic over the blacklisting
Supreme Court
could be asked to review the case

Products and systems

Claude models
the AI models at the centre of the dispute
GenAI.mil AI platform
the Pentagon platform on which deployment talks broke down

How the source tells it

The piece is mostly a straight legal report, but it uses conflict-heavy and national-security framing to raise the stakes.

  • conflict loaded setback language and repeated emphasis on the dispute with the Trump administration
  • alarm national-security wording and the judge’s focus on risk present the issue as dangerous