Anthropic challenges Pentagon blacklist in federal appeals court

A three-judge panel of the U.S. Court of Appeals heard arguments on Tuesday from AI company Anthropic and the Justice Department regarding the Pentagon's decision to place Anthropic on a supply-chain risk designation list. The case centers on whether the Department of Defense's blacklisting of Anthropic was lawful. Anthropic argues the designation is arbitrary and harms its business, while the government defends it as a necessary security measure. The court's ruling could set a precedent for how AI firms are treated under federal procurement rules.