Court ruling widens supply-chain risk in Anthropic case

The D.C. Circuit upheld the Department of War's exclusion of Anthropic's Claude from government supply chains in Anthropic v. U.S. Department of War, broadly reading 'supply chain risk' under FASCSA. The article argues this turns the 2018 statute from a shield against foreign cyber espionage into a procurement lever, adding procedural risk and uncertainty for commercial tech firms. The case stems from the March 3, 2026 determination; a Northern District of California court had found the designation unconstitutional retaliation.

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