D.C. Circuit Upholds Pentagon Supply-Chain Exclusion of Anthropic

Did Anthropic lose its supply-chain-risk appeal?

Yes. The D.C. Circuit denied Anthropic's petitions 2-1 and upheld the Pentagon's exclusion under the Federal Acquisition Supply Chain Security Act.

Orbitrum Investor Impact

Why does the ruling matter for Anthropic's business?

It preserves a restriction on an important defense sales channel because the Pentagon can bar direct contracts and contractors' use of Anthropic products on Pentagon work. The ruling does not quantify Anthropic's lost revenue.

Is Anthropic banned from all U.S. federal work?

No, not by this ruling. The D.C. Circuit upheld a Pentagon-specific action under 41 U.S.C. § 4713, while the separate California judgment blocking the broader federal directive remained in effect as of September 25.

How large had Anthropic's Pentagon agreement been?

Anthropic announced a July 2025 prototype agreement with a $200 million ceiling. That ceiling was not guaranteed revenue, and the appeals ruling does not state how much value Anthropic ultimately realized from it.

What happens next?

Anthropic said it was considering further review of the D.C. Circuit decision. The separate California judgment remains a distinct case governing the broader restrictions.