Federal Appeals Court Upholds Pentagon's Anthropic Blacklist Despite Earlier Judicial Ruling Against Ban

In a setback for Anthropic, a federal appeals court on September 25 upheld the Trump administration's designation of the AI company as a national security supply-chain risk, though a California judge's earlier ruling blocking the ban remains provisionally in place. The U.S. Court of Appeals for the District of Columbia Circuit issued a 2-1 decision rejecting Anthropic's constitutional challenge to the Defense Department's blacklist, which prohibits the military and defense contractors from using the company's Claude AI models.