Appeals Court Denies Anthropic Stay on Risk Designation

A federal appeals court in Washington, D.C., on Wednesday denied artificial intelligence company Anthropic's request to temporarily block the Pentagon's designation of the firm as a supply chain risk, marking a setback for the San Francisco-based startup amid ongoing legal challenges to the Trump administration's actions.

The U.S. Court of Appeals for the District of Columbia Circuit ruled that Anthropic had not met the strict criteria for an emergency stay, despite acknowledging potential irreparable harm to the company. The three-judge panel emphasized the need to avoid disrupting military operations during an active conflict, stating that granting the stay would force the military to continue dealings with an "unwanted vendor" of critical AI services. However, the court granted Anthropic's motion to expedite the case, with oral arguments scheduled for May 19.

The decision contrasts with a ruling last month from U.S. District Judge Rita Lin in San Francisco, who granted Anthropic a preliminary injunction against the supply chain risk label under one federal statute. Judge Lin found that the Pentagon's actions appeared to stem from retaliation over the company's restrictions on...