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Court upholds Pentagon bar on Anthropic contracts

A federal appeals court backed the Pentagon’s move to treat Anthropic as a security supply chain risk, while the company said the designation has cost it billions and is affecting its IPO plans.

THE-DECODER

A federal appeals court in Washington upheld the Pentagon’s decision to keep Anthropic out of military contracts. The court split 2-1 and, according to CNBC, backed the national security supply chain risk designation.

The dispute arose from Anthropic’s refusal to allow its technology to be used for autonomous weapons and mass surveillance. Defense Secretary Pete Hegseth argued that Anthropic’s safety restrictions could put military operations at risk.

Anthropic rejected the ruling and said it was considering its next move. The company also said the designation had already cost it billions and was affecting its planned IPO.

In late August, a federal judge in San Francisco stopped a separate classification made under a different law, saying it was unlawful retaliation over Anthropic’s AI safety position. The article also said that US intelligence agencies used Anthropic’s AI models heavily.

The piece added that parts of the tech industry and former military officials supported Anthropic. It also said President Trump had explicitly said the administration was punishing the company because it saw it as left-leaning and woke.

Named in this story

People

Defense Secretary Pete Hegseth
argued Anthropic’s restrictions could affect military operations
President Trump
was said to have said the administration was punishing the company

Companies

Anthropic
sought to keep its AI out of military uses and challenged the designation

Organisations

federal appeals court in Washington
upheld the Pentagon’s decision in a 2-1 ruling

Governments and agencies

Pentagon
classified Anthropic as a national security supply chain risk
US intelligence agencies
were said to use Anthropic’s AI models heavily

Places

San Francisco
was where a federal judge blocked a parallel classification

How the source tells it

Mostly a straight legal and policy report, but it carries brief partisan framing through the repeated motive claims and the loaded headline wording.

  • political grievance motive language about punishment and partisan labels is repeated without independent support
  • conflict the dispute is cast through adversarial court and administration actions