US appeals court upholds Pentagon's blacklisting of Anthropic


FILE PHOTO: An Anthropic logo is displayed at Moscone Center during the Dreamforce 2026 technology summit in San Francisco, California, US, September 17, 2026. REUTERS/Carlos Barria/File Photo

NEW YORK, Sept ⁠25 (Reuters) - A federal appeals court ⁠on Friday declined to block a ‌Defense Department order blacklisting Anthropic from military contracts and deeming the AIstartupa national security risk.

The ruling ​from the US Court of ⁠Appeals for the ⁠District of Columbia Circuit came in a ⁠lawsuit ‌by Anthropic challenging its designation by the Pentagon as a ⁠national security supply chain risk,which the ​startup says ‌has cost it billions of dollars ⁠in lost ​business and damaged its reputation ahead of ahighly anticipated initial public offering.

Anthropic said ⁠in a statement that it ​respectfully disagrees with the decision but remains confident in its position and is considering ⁠its options, including further judicial review.

A federal judge in San Francisco last month struck down a parallel designation under ​a different law, finding ⁠the administration had unlawfully retaliated against Anthropic ​for its views on ‌AI safety.

(Reporting by Jack ​Queen in New York, Editing by Franklin Paul and Ros Russell)

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