US appeals court lets Pentagon keep blocking Anthropic over national security risk designation

rohanpaul_ai · x · 2026-09-26

The D.C. Circuit ruled the Pentagon can continue excluding Anthropic from military contracts for now over its 'national security risk' designation, handing the Trump administration a win. The majority held Claude's built-in safety restrictions can qualify as a supply-chain risk because they blocked government-requested tasks and created uncertainty during an overseas operation — reasoning that turns on whether encoded safety rules can make the model refuse military tasks deemed operationally critical, not on remote control after deployment. The court accepted Anthropic's AI-safety advocacy as protected speech but said exclusion flowed from rejected contract terms, not retaliation. Judge Rita Lin's separate California ruling struck down the broader §3252 designation; both can coexist because §4713's supply-chain-risk definition is substantially broader, and the D.C. Circuit had 'no quarrel' with the California conclusion.

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