Federal Appeals Court Backs Pentagon's Move to Block Anthropic From US Military Systems

A federal appeals court in Washington, DC has sided with the Pentagon in a dispute over whether Anthropic's Claude AI should be barred from US military and government systems. The ruling effectively upholds the Department of Defense's authority to block the AI startup from federal supply chains, clearing a major legal hurdle for the Trump administration's position.

The Court's Reasoning#

The three-judge panel concluded that Pentagon officials had legitimate grounds to view Anthropic's AI models as a national-security concern. In their opinion, the judges noted that the company deliberately restricts what Claude can do, preventing it from assisting with certain tasks—a safeguard that the military viewed as problematic for its operational needs. The court rejected arguments that the government had overstepped its authority under supply-chain law, characterizing the matter instead as standard contract disputes between a vendor and a buyer.

The two-to-one decision came after the same judges had already declined in April to temporarily halt the restriction, suggesting they saw little merit in Anthropic's emergency appeal.

What Led to the Dispute#

Earlier this year, the Pentagon invoked two separate supply-chain laws to remove Claude from military and federal systems, citing concerns that the company's ethical boundaries would impede critical government functions. Secretary of Defense Pete Hegseth flagged Anthropic's unwillingness to allow its models to power autonomous weapons or surveillance tools as a significant national-security risk.

The company has publicly stated it would not authorize such military applications of its AI—a stance the Pentagon deemed a dealbreaker rather than a reasonable precaution.

Mixed Results in Court#

The legal battle has had an uneven path through the judiciary. A federal judge in San Francisco struck down one of the two supply-chain designations in March and reaffirmed that decision in recent weeks. Friday's ruling, however, ensures the other designation remains in force indefinitely, meaning the Pentagon's blockade can continue while both decisions wind through years of potential appeals.

What's Next for Anthropic#

An Anthropic spokesperson indicated the company is weighing its options, including appeals to a larger panel of the DC Circuit Court of Appeals or the Supreme Court. The company has downplayed the financial impact of the ban, though it acknowledged losing business in the immediate aftermath as customers grew wary of partnering with a firm blacklisted by the federal government.