A ‌federal appeals court on Friday ​(September 25, 2026) declined to block ⁠a Defense Department order blacklisting Anthropic from military contracts and deeming ‌the AI startup a national security risk.

The ruling ‌from the U.S. Court ‌of ⁠Appeals for the District ⁠of Columbia Circuit came in a lawsuit by Anthropic challenging its designation ​by the Pentagon ‌as a national security supply chain risk, which the startup says has cost ‌it billions of dollars ​in lost business and damaged its reputation ahead of ⁠a highly anticipated initial public offering.

Anthropic said in a ‌statement that it respectfully disagrees with the decision but remains confident in its position and is considering its options, including further judicial ‌review.

A federal judge in San ​Francisco last month struck down a parallel designation under ⁠a different law, finding the administration ⁠had unlawfully retaliated against Anthropic for its views ‌on AI safety.