Anthropic Seeks Rehearing in Pentagon Blacklist Appeal

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Anthropic is seeking a rehearing in a U.S. federal court regarding its appeal of a Pentagon decision to blacklist its AI models. The company contends that the CFT-related designation as a "supply chain risk" was retaliatory. In March, under Pete Hegseth, the Pentagon barred defense contractors from using Anthropic’s technology. A September 2-1 ruling upheld the decision. Anthropic had sued the Trump administration and signed a $200 million contract in July 2025, but negotiations to deploy its Claude AI on GenAI.mil collapsed. The MiCA framework may influence future regulatory approaches in related sectors.
CoinDesk reports:

Anthropic is requesting a federal court in Washington, D.C. to rehear its appeal in a case involving the Pentagon blacklisting the company’s AI models.

In a petition filed on Tuesday, Anthropic’s lawyers wrote: “The Secretary of Defense has classified Anthropic—an American AI company whose models help defend the nation—as a national security ‘supply chain risk’ because it refuses to allow its models to be used for mass surveillance of Americans or lethal autonomous warfare, and has publicly articulated these AI safety commitments.” The lawyers added: “A divided panel upheld this extraordinary determination.”

The Department of Defense, led by Pete Hegseth, labeled the company as a "supply chain risk" in March, preventing defense contractors from using Anthropic’s technology when working with the agency. This followed the breakdown of negotiations between the two parties regarding how the military would use Anthropic’s Claude AI model.

Anthropic subsequently sued the Trump administration to overturn this action. In September, the U.S. Court of Appeals for the D.C. Circuit upheld the Pentagon’s decision to blacklist Anthropic, ruling 2-to-1 against Anthropic’s arguments that the Department of Defense’s ban on its Claude models was arbitrary, unauthorized, and unconstitutional.

Anthropic’s lawyers wrote in Tuesday’s filing that the court ignored “compelling evidence that this finding was retaliation against Anthropic for its statements on AI safety.”

Before the conflict between the two parties became public earlier this year, Anthropic was an early partner with several U.S. institutions, including the Department of Defense. Anthropic signed a $200 million contract with the Pentagon in July 2025, but negotiations broke down when the company began discussing the deployment of Claude on the Department of Defense’s GenAI.mil AI platform in September.

A representative from Anthropic declined to comment further beyond this document. The Pentagon did not immediately respond to requests for comment.

— Ashley Capoot of CNBC contributed to this report

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