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Appeals Court Brands Pentagon Anthropic Blacklist “Spectacular Overreach”

5/20/2026

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Story summary
  • Federal appeals judges called the Pentagon’s blacklist of Anthropic a “spectacular overreach” while hearing its lawsuit.
  • The Department of Defense demanded unrestricted model access, but Anthropic required guarantees against autonomous weapons and domestic surveillance.
  • Judges expedited the case because Anthropic could suffer irreparable harm, prompting defense contractors to drop the firm.
  • Anthropic seeks funding at a $900 billion valuation, reports $30 billion revenue, and won a San Francisco injunction for non-DOD agencies.