A federal appeals court in Washington on Wednesday declined to stop the government from moving forward with restrictions on Anthropic, even as a separate federal judge in California had already put similar actions on hold.
In its April 8 order, the U.S. Court of Appeals for the D.C. Circuit said the balance of interests favored the government for now. The judges framed the situation as a choice between potential financial harm to one company and the military’s ability to manage how it acquires and uses AI during an ongoing conflict.
On that basis, they rejected Anthropic’s request to pause the policy while the broader case plays out. At the same time, the court acknowledged the company’s concerns weren’t trivial, noting that Anthropic had raised serious legal questions and could face lasting harm if the dispute drags on. The panel signaled the case should move quickly.
Anthropic, for its part, struck a measured tone after the ruling. A spokesperson said the company was encouraged the court recognized the need for a fast resolution and maintained that the government’s actions would ultimately be found unlawful. The company also emphasized that, despite the legal fight, it still wants to work with federal agencies to ensure its technology is used responsibly.
The conflict stems from a standoff earlier this year. The Department of War had asked for unrestricted use of Anthropic’s AI systems for all lawful purposes. Anthropic pushed back, setting limits on how its technology could be used, specifically ruling out domestic surveillance and fully autonomous weapons. The administration interpreted those conditions as overreach by a private company.
Officials have been blunt about their position. Acting U.S. Attorney General Todd Blanche described the appeals court decision as a win for military readiness, arguing that control over defense systems must remain with government leadership, not a tech firm.
War Department leadership echoed that view, insisting they do not intend to use AI for illegal surveillance or weapons systems without human oversight.
The dispute escalated in late February when President Donald Trump directed federal agencies to stop using Anthropic’s technology, with a six-month phaseout for departments already relying on it. Around the same time, the Pentagon labeled the company a potential supply chain risk to national security, formalizing that stance in a March letter.
That’s where the legal split emerges. In a separate case, a federal judge in California issued a preliminary injunction blocking the government from enforcing those restrictions, at least temporarily.
That order essentially froze the situation as it existed before the administration’s directives, while making clear the government is still free to choose other AI providers if it follows the law.
