Anthropic must go through another legal proceeding before fully addressing the Pentagon’s allegations.

The Case

Recently the California federal court ruled in favor of startup Anthropic, ordering the U.S. Department of Defense (MoD) to remove the company from its “unreliable suppliers” list. This was an important step, but Anthropic still has to prove its ultimate victory in the highest court.

What Experts Say

Respondents interviewed by *Politico* warn:

- Celebrating the result too early is premature – a decision from the District of Columbia (DC) Court of Appeals is still pending.
- Only after that decision can it be considered that adding Anthropic to the list of prohibited suppliers was unlawful and should be overturned.

Current Situation for Partners

Contracts between Anthropic and the Pentagon remain in an uncertain status. This deprives clients and contractors of confidence in continuing cooperation, already causing economic damage.

Key Facts from California Court Materials
| Item | Potential Income | Direct Pentagon Contract | Withdrawal from Cooperation | Three Defense Contractors Refused to Work with the Startup: one voluntarily, two at Pentagon’s request | Three Agreements Worth Over $180 M Terminated After Pentagon Intervention, Though Nearly Completed |
|------|------------------|--------------------------|----------------------------|-------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------|
| Potential Income | $200 M |

What Comes Next
1. DC Court of Appeals
- A panel of three judges will issue a separate decision on the Anthropic–Pentagon dispute.
- The judges are: Gregory Katsas and Neomi Rao (appointed by Donald Trump) plus a third independent member.

2. Possible Outcomes
- *Support for the Startup*: If the court follows Anthropic’s arguments, the inclusion decision will be overturned.
- *Preservation of National Security Priority*: Katsas and Rao may side with the Pentagon, considering defense interests.

3. Impact on Business
- If the hearing takes place only in a few months, Anthropic could lose key clients and revenue during that time.
- Without a final decision, government customers will remain uncertain about future cooperation.

Conclusion
The California court has kicked off Anthropic’s victory, but full relief from restrictions depends on the DC Court of Appeals’ ruling. While the company remains in uncertainty, its partners and contractors cannot confidently plan next steps. Given the composition of the panel and potential national security interests, the outcome remains an open question.