Anthropic loses legal fight to shed DOD's designation as a 'supply-chain risk'

A U.S. federal appeals court has left in place the Defense Department's designation of Anthropic as a supply-chain risk, allowing restrictions on its products in defence work to continue. The dispute arose after the company retained limits against domestic mass surveillance and fully autonomous weapons while the Pentagon sought contractual permission for all lawful uses. The ruling permits the department to bar employees and contractors from using Anthropic systems for Defense Department business. It does not establish a general prohibition on the company's commercial products outside that federal defence context.