U.S. Appeals Court Keeps Anthropic on Pentagon Blacklist

In a 2-1 decision on September 25, the U.S. Court of Appeals for the D.C. Circuit upheld the Department of Defense's March 2026 designation of Anthropic as a supply chain risk, which prohibits military personnel and contractors from using Claude in work for the department.

Compiled by Sergey KostenchukPublished 2026-09-26Updated 2026-09-26

2026-09-26 Business Anthropic

💼 U.S. Appeals Court Keeps Anthropic on Pentagon Blacklist

In a 2-1 decision on September 25, the D.C. Circuit Court upheld the Department of Defense's March 2026 designation of Anthropic as a supply chain risk: military personnel and contractors are prohibited from using Claude in work for the department.

🌍 The decision affirms the right of the president and the secretary of defense to determine which AI vendors are allowed to participate in defense contracts. Microsoft is moving Copilot's agentic features (Cowork, Code, Autopilot) to a consumption-based pricing model instead of a per-user subscription.

👤 The key question is whether a vendor can prohibit the military from using its models; watch for a review or appeal to the Supreme Court. Frontier will soon get Home and Code — get ready for consumption-based pricing.

Source 1: https://www.cnbc.com/2026/09/25/pentagon-anthropic-ai-risk-appeals-court.html Source 2: https://www.theverge.com/news/1000532/microsoft-copilot-super-app-chat-coding-autopilot

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