The U.S. Court of Appeals for the District of Columbia Circuit issued a 2‑1 ruling on Friday that backs the Pentagon’s move to label artificial‑intelligence company Anthropic as a supply‑chain risk. The decision permits the Defense Department to keep removing Anthropic’s Claude models from its systems and to bar contractors from using the company’s products on defense contracts.
Trump’s security concerns validated
President Donald Trump and Defense Secretary Pete Hegseth first warned that Anthropic could jeopardize national security when they designated the firm a supply‑chain risk in February. The appellate court’s majority opinion echoed that concern, noting the Department had “ample support” for its actions and that Anthropic itself admits to embedding restrictions in Claude to prevent certain tasks.
Judge Gregory G. Katsas, who authored the majority opinion, wrote that the Department reasonably feared Anthropic might manipulate Claude’s design to evade national‑security functions the Pentagon deems contractually authorized and necessary. Both Judge Katsas and Judge Neomi Rao, who joined the majority, were nominated by President Trump, underscoring the administration’s lasting influence on the judiciary.
Judges stress intent, not motive
The court clarified that a supply‑chain risk designation hinges on what a company does, not why it does it. While the judges acknowledged Anthropic’s “noble intentions” in restricting Claude for privacy and safety reasons, they rejected the notion that good motives excuse potential security gaps.
Judge Karen LeCraft Henderson, the sole dissenter and a nominee of former President George H. W. Bush, argued that the designation was overly broad. Nonetheless, the majority held that a “bad motive” is not required to support a supply‑chain risk finding.
Separate California case not overturned
The ruling is distinct from a recent California district‑court decision that found the Pentagon acted illegally when it punished Anthropic for criticizing the department’s AI policies. That case dealt with a different regulatory provision and does not affect the D.C. Circuit’s affirmation of the supply‑chain risk authority.
Anthropic’s spokesperson responded that the company “respectfully disagrees” with the decision and noted that another federal court has already deemed the parallel designation unlawful. The firm said it remains confident in its position and is exploring further legal options.
Implications for defense contractors
With the appellate court’s endorsement, the Department of Defense can continue to remove Claude from its workflows and prohibit contractors from incorporating Anthropic products into defense projects. The ruling does not extend to the broader federal government; Anthropic’s tools remain available to other agencies.
The White House has not yet commented on the decision.
Original reporting: Texarkana Gazette — read the source article.
