On Wednesday, the Circuit Court of Appeals for the District of Columbia ruled against Anthropic’s request to suspend the Department of Defense’s supply chain risk designation. The court emphasized that, during active military conflicts, the government’s need to control the use of AI technology outweighs any potential financial or reputational losses for companies.

This ruling officially confirmed that Anthropic’s products continued to be classified as a national security supply chain risk, prohibiting any contractor collaborating with the Pentagon from using its AI models. This precedent may also affect other tech giants.