US Appeals Court Upholds Pentagon's 'Supply Chain Risk' Label on Anthropic

The U.S. Court of Appeals for the D.C. Circuit ruled 2-1 on September 25, 2026, to uphold the Pentagon's classification of Anthropic as a 'supply chain risk.' The court determined that Claude's built-in safety restrictions, which prevent the model from being used for autonomous weapons or domestic surveillance, constitute a national security risk by allowing the company to effectively veto government tasks. While the court acknowledged Anthropic's motives were not malicious, it ruled that the Department of Defense acted within its legal authority under the Federal Acquisition Supply Chain Security Act. This decision conflicts with a separate ruling from a San Francisco federal court, which previously found the Pentagon's actions to be retaliatory and arbitrary. Anthropic is expected to pursue further legal appeals.