A federal legal bid by AI developer Anthropic to remove a supply chain risk designation by the Department of Defense has failed. The US Court of Appeals refused to halt the company's blacklisting, meaning the Pentagon can continue to categorize the firm as a national security risk.

The ruling is a legal setback for the AI firm, which had contested the government's risk label in court. The decision leaves the current security classification active and upholds the Pentagon's assessment of the risks associated with Anthropic's operations.