Federal appeals court rules the Pentagon lawfully labeled AI company Anthropic a supply-chain security risk

The U.S. Court of Appeals for the D.C. Circuit ruled 2–1 on Friday that the Pentagon acted lawfully when it designated the artificial intelligence company Anthropic a supply-chain risk, rejecting the company's challenge. The majority found the Defense Department had "ample support" for its conclusion that Anthropic's products could pose a national security risk. The Wall Street Journal reported that courts have issued conflicting rulings in the dispute.