Anthropic's attorneys are seeking a rehearing from the D.C.-based court after losing a 2-1 decision in September that sustained the Pentagon's action. The petition lands after months of friction over how the military could use the company's Claude models.
In the filing, the company quotes its own petition stating, "The Secretary of War branded Anthropic - an American AI company whose models help defend the nation - a national-security 'supply chain risk' because it declined to permit its models to be used for mass surveillance of Americans or lethal autonomous warfare and publicly explained those AI-safety commitments." The brief also argues the court overlooked "straightforward evidence the designation was retaliation for Anthropic's speech about AI safety," and notes that "A divided panel upheld that extraordinary designation."
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Anthropic had been an early partner to multiple U.S. agencies, including the DOD. In July of 2025, the Pentagon and Anthropic executed a $200 million contract, but when talks began that September to deploy Claude on the DOD's GenAI.mil platform, negotiations fell apart. In March, the department's label cut off defense contractors from using Anthropic's technology in their agency projects.
Anthropic brought its case against the Trump administration to overturn the restriction, and the September ruling kept the ban in place. Asked for further remarks, a company spokesperson said there was nothing to add beyond the court filing. The Pentagon did not provide a response to the request for comment right away. For everyday investors, the takeaway is simple: government policy can swing tech access and revenue prospects quickly, especially when national security is in the mix.
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