Court rules to keep Anthropic labeled a supply-chain risk, for now

Rachel Metz, Bloomberg News on Apr 8, 2026

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A federal appeals court declined for now Anthropic PBC’s request to pause a declaration by the Pentagon that the artificial intelligence company poses a risk to the U.S. supply chain, even as plans for a broader government ban on its technology remain blocked by a California judge.

In its decision Wednesday, the three-judge panel in Washington, D.C., said it would work quickly to review the case because Anthropic is likely to “suffer some irreparable harm” as the legal action plays out. The court set oral arguments in the case for May 19.

The ruling leaves in place a U.S. Defense Department declaration that was the legal basis for the Trump administration’s plan to sever all ties to the company, which claims it could face billions of dollars in lost revenue. The government announced the ban after a dispute with Anthropic over how its AI technology would be used by the military.

“On one side is a relatively contained risk of financial harm to a single private company,” the court wrote in explaining why it rejected the request for an immediate pause. “On the other side is judicial management of how, and through whom, the Department of War secures vital AI technology during an active military conflict.”

Anthropic welcomed an expedited schedule for its lawsuit.

“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,” the company said in a statement.

The Claude chatbot maker has been fighting back on two fronts. It asked the appeals court on March 9 to review the Pentagon’s declaration, calling it “arbitrary, capricious and an abuse of discretion.”

The same day, Anthropic sued in San Francisco federal court to challenge the ban, which could mean billions in lost revenue. On March 27, a judge in that case blocked the government following through while the lawsuit proceeds. The Trump administration is appealing.

The Defense Department’s declaration that Anthropic posed a supply-chain risk escalated a high-stakes dispute. The company demanded assurances that its AI wouldn’t be used for mass surveillance of Americans or autonomous weapons deployment. The government rejected any restrictions, citing national security.

In the San Francisco lawsuit, Anthropic claims it is being shut out for disagreeing with the administration. The company said the legal principles at stake affect every federal contractor whose views the government dislikes.

The case is Anthropic v. U.S. Department of War, 26-01049, U.S. Court of Appeals, District of Columbia Circuit (Washington).