A US appeals court upheld the Pentagon’s exclusion of artificial intelligence startup Anthropic from its supply chain on Friday.
The panel affirmed the Defence Department’s decision to ban the firm after it refused to alter the safety parameters built into its AI model, Claude.
The dispute began in February, when Defence Secretary Pete Hegseth demanded that Anthropic remove specific safety restrictions.
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Hegseth sought to permit Claude’s deployment for fully autonomous lethal weaponry and mass domestic surveillance.
The artificial intelligence startup rejected the directive, citing firm internal policies against targeting civilians and deploying autonomous weapon systems.

While the appeals court ruled in favour of the military’s supply chain authority, Anthropic previously won a separate legal challenge.
Last month, a federal court in California struck down a broader Trump administration ban on the company, declaring that sweeping action unlawful.
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