Court denies Anthropic's bid to block Pentagon blacklist
What's the story
Anthropic's attempt to temporarily halt the Department of Defense's (DoD) blacklisting has been denied by a federal appeals court in Washington, D.C. The ruling comes as part of a lawsuit against the sanction. The decision follows a separate (but related) case in which a San Francisco federal judge granted Anthropic a preliminary injunction against the Trump administration's ban on its Claude model.
Risk assessment
Appeal court explains reasons behind ruling
The appeals court said, In our view, the equitable balance here cuts in favor of the government. It explained that on one side is a relatively contained risk of financial harm to a single private company (Anthropic). On the other side, there is judicial management of how and through whom vital AI technology is secured during an active military conflict.
Legal proceedings
Meaning of split decisions by 2 courts
The split decisions by the two courts mean that while Anthropic is excluded from DoD contracts, it can still work with other government agencies as the litigation continues. Defense contractors can't use Claude in their work with the agency but are free to use it for other cases. The DoD had declared Anthropic a supply chain risk in early March, claiming its technology poses a threat to US national security.
Challenge
DoD designation 'not in accordance with legal procedures': Anthropic
Anthropic has challenged the Pentagon's designation, calling it unconstitutional, arbitrary, capricious, and not in accordance with legal procedures. The appeals court acknowledged that the company "will likely suffer some degree of irreparable harm absent a stay," but added that its interests "seem primarily financial in nature." It also noted that while Anthropic claimed the DoD was infringing on its right to free speech, "Anthropic does not show that its speech has been chilled during the pendency of this litigation."
Company response
We are grateful court recognized need for resolution: Anthropic
An Anthropic spokesperson said they are "grateful the court recognized these issues need to be resolved quickly" and are "confident the courts will ultimately agree that these supply chain designations were unlawful." The company added, while this case was necessary to protect Anthropic, our customers, and our partners, our focus remains on working productively with the government to ensure all Americans benefit from safe reliable AI.
Official reaction
A 'resounding victory for military readiness': Acting US attorney general
Todd Blanche, the acting US attorney general, hailed the decision as a "resounding victory for military readiness." He said military authority and operational control belong to the Commander-in-Chief and Department of War, not a tech company. The DoD used two different designations under US federal court to justify its supply chain risk action against Anthropic.