Anthropic, Pentagon face off in court over government blacklisting of AI company

Watch on YouTube ↗  |  May 19, 2026 at 15:42  |  4:30  |  CNBC

Summary

CNBC's Kate Rooney reports on Anthropic's legal battle against the Pentagon over its blacklisting as a supply chain risk. The D.C. Circuit Court is hearing arguments, and Anthropic is also pursuing a separate First Amendment case. The dispute stems from the Pentagon demanding unchecked access to Anthropic's AI models. Meanwhile, Anthropic continues to raise large funding rounds.

  • Anthropic is fighting the Pentagon's blacklisting in federal court.
  • The Pentagon declared Anthropic a supply chain risk after contract disputes.
  • Anthropic refused to give unchecked access to its models for defense purposes.
  • The D.C. Circuit denied an emergency block but the case continues.
  • Anthropic also won a preliminary injunction in California on First Amendment grounds.
  • The Pentagon continues to use Anthropic's models in military operations.
  • Anthropic recently raised $30 billion at a $900 billion valuation.
  • The case highlights tensions between AI companies and government oversight.
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