Anthropic is asking a U.S. appeals court to halt the Pentagon's designation of the AI firm as a supply-chain risk. The company argues this classification, which bars the U.S. military and its contractors from using Anthropic's AI products, could result in billions of dollars in lost revenue.
This move follows a dispute over technology guardrails for the military's use of Anthropic's artificial intelligence tools. The Pentagon, under Defense Secretary Pete Hegseth, previously labeled the company a supply-chain risk. Anthropic has also filed a separate lawsuit challenging this blacklisting.
The AI firm contends the designation will cause "irreparable harm," citing that over 100 enterprise customers have inquired about the impact. Anthropic estimates the government's actions risk hundreds of millions, or even multiple billions, in lost revenue for 2026.