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Appeals court upholds Pentagon's supply-chain-risk label on Anthropic

The U.S. Court of Appeals for the D.C. Circuit ruled that the Pentagon can legally designate AI company Anthropic a supply chain risk, siding with the Trump administration in the case.

By The Lumen desk · Sept 26, 2026 · 1 min read
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What we know
1 The U.S. Court of Appeals for the D.C. Circuit ruled the Pentagon can label Anthropic a supply chain risk.
2 CNBC reported the decision was 2-1.
3 The designation excludes Anthropic's Claude AI product from the Defense Department's supply chain, according to Just the News.
4 According to Reason, the court found the designation stemmed from Anthropic's refusal to agree to contract terms, not its speech, rejecting a First Amendment challenge.

A federal appeals court has ruled that the Pentagon can label Anthropic, the artificial intelligence company behind the Claude chatbot, a supply chain risk. The U.S. Court of Appeals for the D.C. Circuit's decision upholds the Department of Defense's blacklisting of the company.

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CNBC reported the ruling came in a 2-1 decision. Anthropic had challenged the designation on First Amendment grounds, but according to Reason, the D.C. Circuit majority concluded the risk designation stemmed from Anthropic's refusal to agree to certain contract terms, not from its speech.

Just the News reported the ruling upholds the Pentagon's exclusion of Claude, Anthropic's AI product, from the government's supply chain.

The ruling comes amid broader debate over AI regulation. CBS News noted growing concerns over AI safety and the pace of its development have prompted calls for government oversight, and that President Trump has said he plans to appoint an AI adviser and create an AI force.

How each side covered it

Left

11 outlets
  • Multiple outlets reported the D.C. Circuit ruled the Pentagon's blacklisting of Anthropic as a supply chain risk was legal.
  • Ars Technica reported the court's reasoning that Anthropic refused to enable certain Claude features, and judges warned 'overly constrained AI models' could cause military operations to fail.
  • CBS News tied the ruling to broader concerns about AI safety and regulation, citing Public Citizen's J.B. Branch and noting Trump's plans for an AI adviser and AI force.
  • Coverage across outlets like Politico, AP, and CNN framed the decision as the Pentagon prevailing in labeling Anthropic a national security or supply chain risk.

“Federal appeals court rules Pentagon can blacklist Anthropic” — The Washington Post

Center

7 outlets
  • The Hill and Reuters reported the appeals court sided with the Trump administration, upholding the Pentagon's blacklisting of Anthropic.
  • CNBC specified the ruling was a 2-1 decision by the federal appeals court.
  • The Wall Street Journal framed the outcome as the court upholding Anthropic's labeling as a security risk.

“US appeals court upholds Pentagon's blacklisting of Anthropic” — Reuters

Right

9 outlets
  • Reason reported the D.C. Circuit majority rejected Anthropic's First Amendment challenge, concluding the risk designation stemmed from contract-term refusal rather than speech.
  • Just the News and Breitbart described the ruling as upholding the Pentagon's exclusion or ban of Anthropic's Claude from the supply chain.
  • Newsmax and the Washington Examiner reported the court declined to block the Pentagon's supply-chain-risk designation of the AI company.
  • The Epoch Times and Washington Times covered the ruling as confirming the Defense Department's authority to blacklist Anthropic.

“Anthropic's "Supply Chain Risk" Designation Stemmed from Its Refusing to Agree to Contract Terms, Not Its Speech” — Reason

Questions readers ask

What did the federal appeals court rule about Anthropic?

The U.S. Court of Appeals for the D.C. Circuit ruled that the Pentagon can legally label Anthropic, an artificial intelligence company, a supply chain risk, upholding the Department of Defense's blacklisting of the firm.

Why did the Pentagon blacklist Anthropic?

According to Reason, the D.C. Circuit majority found that the supply-chain-risk designation stemmed from Anthropic's refusal to agree to certain contract terms, not from its speech, rejecting the company's First Amendment challenge.

What was the vote on the appeals court ruling?

CNBC reported the U.S. Court of Appeals for the D.C. Circuit's decision was 2-1 in favor of upholding the Pentagon's designation of Anthropic as a supply chain risk.

What does the supply chain risk label mean for Anthropic?

The designation allows the Pentagon to exclude Anthropic's Claude AI product from its supply chain, according to Just the News.

How did coverage of the ruling differ across outlets?

Left-leaning outlets emphasized the Pentagon's authority to blacklist Anthropic and framed it within broader AI safety debates, while right-leaning outlets focused on the legal basis for the ruling, noting it stemmed from contract disputes rather than speech, and center outlets reported the procedural details of the court's decision.

Sources · 27 outlet reports

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