D.C. Circuit Upholds Pentagon's Decision to Exclude AI Provider Anthropic due to Supply-Chain Risk

The U.S. Court of Appeals upheld the Pentagon's exclusion of AI provider Anthropic due to supply-chain risk under the Federal Acquisition Supply Chain Security Act (FASCSA), affirming that government can reject technology vendors whose product restrictions impair operational needs. The ruling emphasizes government authority to flag vendor-imposed limitations as national security threats, affecting AI contractors' procurement and subcontracting strategies.

This Wire brief sits within Fusion42's coverage of AI & ML, and 5 sources have reported it between 25 Sep 2026 and 1 Oct 2026.