Anthropic loses bid to block Pentagon blacklisting in D.C. court

Why it matters: The split rulings from two different courts mean Anthropic still has battles left to fight over its supply-chain risk designation.

• The dispute centers on Pentagon restrictions on use of its Claude technology in classified settings.

What they're saying: "We're grateful the court recognized these issues need to be resolved quickly and remain confident the courts will ultimately agree that these supply chain designations were unlawful," an Anthropic spokesperson said.

• "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."
• A source familiar with the case said the type of emergency relief Anthropic sought from the D.C. appeals court is rarely granted.

How it works: The San Francisco injunction means non-Pentagon agencies no longer have to terminate contracts with Anthropic.

• But Wednesday's decision means the Pentagon can still treat Anthropic as a supply-chain risk under a separate statute; therefore excluded from any new Pentagon contracts, the source familiar said.
• Still, the Pentagon is expected to continue using Anthropic products for the next six months.