The U.S. Court of Appeals for the D.C. Circuit on Friday ruled 2-1 to reject AI company Anthropic's objection to being designated a national security risk in the Pentagon's supply chain, marking a key victory for the government. The dispute stemmed from Anthropic's refusal to lift contractual restrictions on its Claude model being used for lethal autonomous weapons and domestic surveillance. Anthropic stated it "respectfully disagrees" with the ruling and is considering further review. However, a prior ruling by a California federal judge that paused the government's ban remains in effect, leaving the overall direction of the dispute uncertain.