A U.S. appeals court upheld the Pentagon’s blacklisting of Anthropic. The designation bars the military from using its models. It also blocks defense contractors from using them in Pentagon work. The court cited national security risks in its 2-1 ruling. Anthropic had sued to reverse the decision. The Pentagon had demanded unfettered access to the models. Anthropic sought guarantees against autonomous weapons use. Talks collapsed in September 2025. The ruling delays taking effect to allow further appeals. Anthropic says it is considering all options.