DC Circuit Upholds Pentagon’s Anthropic Supply Chain Risk Designation

25 upheld the Pentagon’s designation of Anthropic as a supply chain risk, allowing the Defense Department (DOD) to continue excluding the company’s artificial intelligence (AI) models from its systems and defense contract work. The 2-1 ruling rejected Anthropic’s challenge under the Federal Acquisition Supply Chain Security Act (FASCSA) 2018, which gives the government authority to address supply chain risks in federal procurement.