A federal appeals court has rejected Anthropic's challenge to the Pentagon's labeling of it as a supply chain risk. The decision, made by the U.S. Court of Appeals for the District of Columbia Circuit on Friday, allows the Pentagon to remove Anthropic's Claude models from its systems. The dispute began in February when President Donald Trump and Defense Secretary Pete Hegseth accused Anthropic of endangering national security. Anthropic CEO Dario Amodei refused to back down. The ruling is separate from a previous case where a judge found the Pentagon acted illegally against Anthropic for its criticism of AI use.