Appeals Court Upholds Pentagon's Authority to Flag Anthropic as Supply Chain Risk

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A federal appeals court has ruled in favor of the Trump administration, allowing the Pentagon to designate AI company Anthropic a supply chain risk. The decision came from a divided panel of judges, indicating disagreement among the court. Anthropic had challenged the designation, arguing it violated multiple of the company's rights. The ruling marks a significant legal win for the administration in its oversight of AI firms within the defense supply chain.

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