By Reuters | Updated: March 12, 2026
March 12 (Reuters) – Anthropic on Wednesday sought a stay from a U.S. appeals court after the Pentagon said the company was a supply-chain risk, pending a judicial review of the case, adding that the designation could cost it billions of dollars in lost revenue.
Anthropic’s latest request comes after a weeks-long dispute over technology guardrails on the use of Anthropic’s artificial intelligence tools by the U.S. military. Defense Secretary Pete Hegseth labelled the firm a supply-chain risk and barred the Pentagon and its contractors from using its AI products.
The Pentagon declined to comment on the ongoing litigation.
The AI firm separately filed a lawsuit earlier this week in a California federal court to challenge its Pentagon blacklisting.
In a filing with the U.S. Court of Appeals for the District of Columbia Circuit on Wednesday, Anthropic said the Pentagon’s supply-chain designation would cause the company “irreparable harm.”
According to Anthropic’s court filing, more than 100 enterprise customers have reached out to the company about the designation.
“By Anthropic’s best estimate, for 2026, the government’s adverse actions risk hundreds of millions, or even multiple billions, of dollars in lost revenue,” lawyers for the AI firm wrote.
Reporting by Rajveer Singh Pardesi in Bengaluru; Editing by Clarence Fernandez, Thomas Derpinghaus and Louise Heavens
© Thomson Reuters 2026
