AI & Technology — 2026-04-09
Appeals Court Rejects Anthropic Bid to Block Pentagon Supply-Chain Blacklisting
A three-judge DC Circuit panel rejected Anthropic's emergency request to stay the Pentagon's supply-chain risk designation, ruling the "equitable balance cuts in favor of the government." Defense Secretary Hegseth classified Anthropic as a supply-chain risk after the company refused to loosen Claude chatbot safeguards for surveillance and autonomous weapons applications. The court acknowledged Anthropic will "likely suffer some degree of irreparable harm" but found the company's interests "primarily financial in nature." The panel granted expedited proceedings with oral arguments set for May 19. A separate San Francisco judge had previously granted Anthropic a preliminary injunction temporarily blocking the designation.
The ruling establishes a precedent that the government's national security interest in controlling AI supply chains outweighs a company's financial harm from blacklisting. With oral arguments set for May 19, the case could define the legal boundaries of the executive branch's authority to compel AI companies to modify safety guardrails for military applications.