Anthropic Seeks Full Court Review of Pentagon Supply-Chain Risk Designation

Anthropic has asked the full 11-judge U.S. Court of Appeals for the D.C. Circuit to rehear its challenge to the Pentagon’s designation of the company as a supply-chain risk. The designation followed failed negotiations over Anthropic’s refusal to allow Claude models to support domestic mass surveillance or fully autonomous lethal weapons. A three-judge panel upheld the designation in September by a 2–1 vote, finding that the Pentagon acted within the Federal Acquisition Supply Chain Security Act of 2018 (FASCSA).

The dispute turns partly on the panel’s interpretation that the statute’s phrase “otherwise manipulate” does not require malicious intent. Anthropic warns that the ruling could establish a broad precedent for excluding government contractors and inflict substantial commercial and reputational harm. A Lawfare analysis argues that FASCSA was intended to address compromised technology, espionage and exploitation of trusted access—not openly disclosed contractual restrictions. The case concerns procurement authority and AI-use restrictions, not a reported cyberattack or technical compromise of Claude. Anthropic could seek Supreme Court review if the full appeals court declines rehearing.