Court Upholds Pentagon Ban on Anthropic

A federal appeals court in Washington ruled 2-1 to uphold the Pentagon's classification of Anthropic as a national security supply chain risk, barring the AI startup from military contracts. The case stems from Anthropic's refusal to allow its technology for autonomous weapons and mass surveillance. Anthropic rejects the ruling, says it is weighing next steps, and claims the designation has cost billions and hurt its planned IPO.