Appeals Court Keeps Anthropic’s Pentagon Supply-Chain Exclusion in Place

Is Anthropic still blacklisted by the Pentagon?

Yes. The September 25 ruling leaves the Section 4713 exclusion in place for the Defense Department supply chain, including covered contracts and subcontracts using Anthropic for department work. Cour d'appel D.C.

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How much business has Anthropic said it lost?

Anthropic says the designation has cost it billions of dollars in lost business, but that figure is the company’s claim rather than a court finding. Earlier court evidence showed three near-closing deals worth more than $180 million fell apart and projected 2026 revenue losses ranging from hundreds of millions to multiple billions. The Daily Record+1

Why does the ruling matter for Anthropic investors?

It preserves a constraint on defense-related revenue and contractor access and keeps legal uncertainty over the business ahead of an anticipated IPO. The ruling concerns the Defense Department supply chain rather than a blanket prohibition on all commercial use of Claude. MarketScreener+1

Didn't another court already strike down the blacklist?

Yes, but under a different statute. A California federal court blocked the parallel Section 3252 designation, while the D.C. Circuit held that the broader Section 4713 authority at issue here supported the Pentagon’s action and said the California ruling did not control this case. Justia Law+1

What happens next?

Anthropic said it is considering options including further judicial review. The Section 4713 exclusion remains in force in the meantime. The Daily Record+1