Anthropic Seeks Rehearing After D.C. Court Upholds Pentagon's Blacklisting
Anthropic is requesting that a federal appeals court in Washington, D.C., rehear its case after the U.S. Department of Defense labeled it a supply chain risk earlier this year. The AI company had sued the Trump administration to overturn the decision, which barred defense contractors from using Anthropic's models for military work. In September 2026, the D.C. Circuit upheld the Pentagon’s blacklisting in a 2-1 ruling. Anthropic argues that its designation as a supply chain risk was retaliatory and based on its public stance against allowing AI to be used for mass surveillance or lethal autonomous warfare. The company had previously signed a $200 million contract with the Pentagon but negotiations over deploying its Claude models collapsed in late 2025. The case highlights growing tensions between government agencies and private tech firms regarding ethical use of artificial intelligence, particularly as Anthropic seeks to maintain access to lucrative defense contracts.