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Anthropic loses appeals court bid to block Pentagon blacklisting temporarily

On Wednesday, a Washington court denied Anthropic's request to temporarily pause its blacklisting by the Pentagon, blocking the startup's bid to prevent financial and reputational harm while challenging the supply chain risk designation.
The Pentagon declared Anthropic a supply chain risk in early March under 41 U.S.C. 4713 and 10 U.S.C. 3252, while Anthropic argues the government is retaliating against the company for its criticism of military AI restrictions.
Prioritizing military operations, the three-judge panel stated that granting a stay would force the United States military to prolong dealings with an unwanted vendor during an ongoing military conflict.
A San Francisco court previously granted Anthropic a preliminary injunction against the 10 U.S.C. 3252 designation last month, creating a conflict with this ruling that courts must still resolve.

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