US court refuses to remove Pentagon’s ban on Anthropic

Anthropic and Pentagon court war continues as the Washington, D.C federal court declined to halt the Pentagon's national security blacklisting of the AI company as of now, according to a Reuters report. This comes as a win for the Trump administration as it challenges Anthropic’s high-stakes lawsuit to overturn the “supply chain risk” designation and restore its reputation.

Anthropic has accused the US Defence Secretary, Pete Hegseth, of misusing his power in labelling because the company refused to meet its requirement, and removing safety restrictions on its AI products. 

Due to the label, Anthropic is blocked from getting any Pentagon deal in future, and it could also lead to a wider ban across the US government. This may cause reputational harm to the company, and it can also lose billions of ⁠dollars in lost business.

Anthropic also accuses the government of violating its right to free speech under the First Amendment of the Constitution. The company claims it was not allowed to defend itself, which goes against its right to due process.

Acting Attorney General Todd Blanche shared a post on the social media platform X, talking about the victory on the government's stance. The post said, “Today’s D.C. Circuit stay allowing the government to designate Anthropic as a supply chain risk is a resounding victory for military readiness.”

“Our position has been clear from the start — our military needs full access to Anthropic’s models if its technology is integrated into our sensitive systems,” he added.

Despite the ongoing battle with the Pentagon and the Trump administration, Anthropic’s products across services, including the Claude app, Claude Code, Claude Cowork, and others, are doing well in terms of business. Its annual revenue also increased to over $30 billion from from $9 billion at the end of 2025, and the company's post-money valuation is recorded at $380 billion.

The company recently previewed its most powerful AI model, Claude Mythos, for the Project GlassWing. Several companies, including Google, Apple, Nvidia, and others, will be using the AI model for cybersecurity.