Anthropic asked a U.S. appeals court to pause the Pentagon’s “supply-chain risk” designation, warning the decision could cost the AI firm billions in lost revenue.
The request follows a weeks-long dispute between Anthropic and the U.S. Department of Defense over technology guardrails governing military use of its artificial intelligence tools.
Defense Secretary Pete Hegseth labeled the company a supply-chain risk, barring the Pentagon and its contractors from using Anthropic’s AI products.
The Pentagon declined to comment on the ongoing litigation, maintaining silence as the legal challenge moves through federal courts.
Earlier this week, Anthropic also filed a separate lawsuit in California federal court, directly challenging the Pentagon’s decision to blacklist its technology.
In its filing with the U.S. Court of Appeals for the District of Columbia Circuit, the company argued the designation would cause “irreparable harm.”
Anthropic said more than 100 enterprise customers have contacted the company seeking clarification about the government’s risk designation.
Company lawyers warned the Pentagon’s actions could jeopardize hundreds of millions—or even billions—of dollars in revenue during 2026.
