NATIONAL NEWS

Appeals court judges appear to be divided over Pentagon’s legal dispute with AI company Anthropic

May 19, 2026, 10:55 AM

FILE - Pages from the Anthropic website and the company's logo are displayed on a computer screen i...

FILE - Pages from the Anthropic website and the company's logo are displayed on a computer screen in New York on Feb. 26, 2026. (AP Photo/Patrick Sison, File)
Credit: ASSOCIATED PRESS

(AP Photo/Patrick Sison, File)

WASHINGTON (AP) — A panel of appellate judges appeared to be divided on Tuesday over a legal dispute between the Pentagon and technology company Anthropic, which claims Defense Secretary Pete Hegseth unlawfully and falsely branded it as a national security risk for raising ethical and safety concerns about AI usage in war.

Three judges from the U.S. Court of Appeals for the District of Columbia Circuit didn’t indicate how soon they would rule on Anthropic’s appeal, but some of their questions and remarks hinted at how they might decide the case.

Judge Karen LeCraft Henderson said she sees no evidence to support the Pentagon’s determination that Anthropic poses a supply-chain risk to national security.

“To me, this is just a spectacular overreach by the (Defense) Department,” said Henderson, who was nominated by Republican President George H. W. Bush.

Judge Neomi Rao, who was nominated by Republican President Donald Trump, questioned what basis the court could have for second-guessing Hegseth’s judgment. The Pentagon’s dispute with Anthropic centers on how AI technology can be used in fully autonomous weapons and potential surveillance of Americans.

“I take the secretary to be making more general points than the ones that you’ve identified,” Rao told Anthropic attorney Kelly Dunbar. “It’s about risk, and they say, ‘Well, based on what we know, we can’t trust that the (AI) model may not have something embedded within it that is going to create a problem for military capabilities.”

Anthropic filed lawsuits in Washington, D.C., and San Francisco after the Pentagon designated the San Francisco-based company as a supply chain risk and Trump ordered all federal agencies to stop using its technology. Anthropic claims the Pentagon is illegally retaliating against it by stigmatizing it with a designation meant to protect against sabotage of national security systems by foreign adversaries.

Anthropic says neither lawsuit seeks to force the government to contract with the company. But it claims that it has been irreparably harmed by Hegseth’s supply-chain risk designation.

Earlier this month, the D.C. circuit rejected Anthropic’s request for an order that would have blocked the Pentagon’s actions while the company’s appeal is pending.

In a separate but related case, a federal judge in San Francisco ruled in Anthropic’s favor last month and blocked the Pentagon from labeling Anthropic as a supply-chain risk.

In a court filing ahead of Tuesday’s hearing in Washington, Anthropic said it can’t manipulate its AI tool Claude once it is deployed in classified Pentagon military networks.

But a Justice Department attorney, Sharon Swingle, told the D.C. Circuit judges that Anthropic clearly has the ability to interfere with the Pentagon’s usage of the company’s AI model “for critical military operations.”

“It’s undisputed that the failure of the model in active military operations could have catastrophic national-security consequences and put service members’ lives at risk,” she said.

Dunbar said Hegseth’s designation of Anthropic as a supply-chain risk “defied congressionally mandated procedures, exceeded statutory limits and violated the Constitution.”

“For the first time ever, the secretary turned a powerful national security authority against an American company, and he did so to gain leverage in a contract dispute,” Dunbar said.

Judge Gregory Katsas, another Trump nominee, also heard Tuesday’s arguments.

National News

FILE - A customer buys Chinese made ginger candy at 99 Ranch Market, an Asian grocery store in Los ...

Associated Press

Voters want the next Congress to focus on costs and Iran, not on Trump, a new AP-NORC poll shows

WASHINGTON (AP) — Regardless of the outcome in the coming election, a new AP-NORC poll shows voters from both major political parties want the next Congress to focus on making life more affordable and ending the war in Iran, while fewer are looking for an emphasis on President Donald Trump — whether it’s investigating him […]

21 minutes ago

FILE - Clouds form over pumpjacks and power transmission towers on Lake Maracaibo in Cabimas, Venez...

Associated Press

Venezuela claims to have 300 billion barrels of oil in the ground. But experts say that’s a stretch

A single figure sets Venezuela apart from the rest of the world: 303 billion barrels of so-called proven oil reserves. But experts say the country’s estimate is inherently problematic and far from proven — rooted in exaggerated, aging data from a corrupt government. The number has long been touted by politicians and investors as an […]

44 minutes ago

FILE - Department of Elections workers sort mail-in ballots for the California primary election at ...

Associated Press

Voting-related measures on November ballots include a voter ID push targeting mail-in ballots

Advocates for greater voter identification requirements are pursuing a new approach in some states: a mandate to place driver’s license or partial Social Security numbers on mail-in ballots. Variations of the voter ID proposals are being decided in the midterm elections in California, Colorado and Nevada — three states where conservative activists collected petition signatures […]

47 minutes ago

House Minority Leader Hakeem Jeffries, D-N.Y., talks about the policies of President Donald Trump a...

Associated Press

Jeffries says Democrats ‘on the verge’ of winning the House. It puts speaker’s gavel in reach

TOLEDO, Ohio (AP) — Democratic leader Hakeem Jeffries listened from the front row at the old Ohio church as the Sunday congregation heard of scripture’s guidance for calming a gathering storm. “Wind, hush!” the speaker advised, describing the power to bring about change. Jeffries nodded along, the words resonating beyond the church’s soaring brick walls, […]

49 minutes ago

Containers of caffeine pouches, small packets placed in the mouth between the lip and gum, are on d...

Associated Press

Some schools are banning caffeine pouches. Here’s what parents and students should know

Coffee, energy drinks and soda are not the only ways young people are getting their caffeine fix. Another product catching the attention of health experts, school officials and parents doesn’t come in a cup or a can. It comes in a pouch. Caffeine pouches, small packets placed in the mouth between the lip and gum, […]

50 minutes ago

An actor portraying U.S. President Donald Trump sits behind bars in a billboard installation resemb...

Associated Press

Iran says 7 oil tankers are on fire or damaged in a key strait as fears grow of a return to war

Seven oil tankers caught fire or were damaged in the Strait of Hormuz overnight after being hit by Iran or striking naval mines, Tehran said Thursday, a markedly high number as tensions wind upward over concerns about a return to all-out war. With days before Israel’s close elections in which Prime Minister Benjamin Netanyahu could […]

2 hours ago

Appeals court judges appear to be divided over Pentagon’s legal dispute with AI company Anthropic