
Investing.com-- Anthropic's bid to temporarily block its national security blacklisting by the Pentagon was struck down by a Washington, D.C., federal appeals court on Wednesday.
The artificial intelligence startup had sought to block its designation as a "supply chain risk" by the Pentagon, after it refused to remove certain guardrails in its products as part of a contract with the Department of Defense.
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Wednesday's ruling comes as a win for the Donald Trump administration, after an earlier court ruling barred Washington from enforcing a ban on Anthropic's flagship Claude AI.
With the split decisions, Anthropic can continue working with other government agencies while its litigation continues. But the company is effectively banned from defense contracts.
The DOD had declared Anthropic as a supply chain risk in early March, effectively ending the use of its Claude AI by defense contractors.
Anthropic, in its lawsuit, had alleged that Defense Secretary Pete Hegseth overstepped his authority in designating the company as a supply chain risk.