AI Policy & Regulation
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Anthropic challenges Department of Defense blacklisting in federal appeals court
May 19, 2026
AI Summary
Anthropic is contesting its designation as a supply chain risk by the Department of Defense in a federal appeals court. The designation restricts defense contractors from using Anthropic's AI models, which the company argues is unjustified and unconstitutional.
- A federal appeals court in Washington, D.C., will hear arguments in Anthropic's lawsuit against the Department of Defense (DOD) regarding its blacklisting as a supply chain risk. The hearing is scheduled for 9:30 a.m. ET on Tuesday.
- Anthropic, an AI startup, was labeled a supply chain risk by Defense Secretary Pete Hegseth, which restricts defense contractors from using its Claude models. This designation is typically reserved for foreign adversaries.
- The DOD's decision followed failed negotiations where the Pentagon sought unrestricted access to Anthropic's models, while Anthropic sought assurances against the use of its technology for autonomous weapons or mass surveillance.
- Anthropic's CEO, Dario Amodei, stated the company had to challenge the designation in court after negotiations collapsed.
- The appeals court previously denied Anthropic's request to block the designation temporarily but agreed to expedite the case due to potential irreparable harm to the company.
- The DOD argues that Anthropic could pose a national security risk by manipulating its models, while Anthropic contends that the supply chain risk designation lacks basis and violates constitutional rights.
- Anthropic has also filed a related lawsuit in San Francisco, where it received a preliminary injunction allowing other government agencies to use its models during the litigation.
anthropicus governmentai regulationcourt casesupply chain risk