Anthropic has asked the U.S. Court of Appeals for the District of Columbia Circuit to rehear its challenge to the Pentagon’s supply-chain risk designation. The Defense Department imposed the designation in March, barring defense contractors from using Anthropic’s technology, and a three-judge panel upheld it by a 2-1 vote in September. The majority said the Pentagon acted reasonably because Anthropic’s restrictions on autonomous weapons and mass surveillance could compromise military operations, while rejecting the company’s claim of retaliation. Anthropic argues that the panel expanded a federal law aimed at hostile foreign actors to cover government contractors, allowed the Pentagon to act without a pre-designation process and ignored evidence that the designation punished its public AI-safety position. The company has said the blacklisting cost it billions of dollars in lost business. A federal judge in California separately struck down a parallel designation under another law in August.