What happened

Anthropic has taken a new step in its legal fight over the Pentagon's decision to label it a supply-chain risk. Following a 2-1 appellate ruling that upheld the designation, the company asked the full federal appeals court in Washington to rehear the case.

The company's argument

Anthropic says the designation amounts to retaliation for its public statements about AI safety. It argues the dispute has a free-speech dimension, not just a commercial one.

Why it matters

The clash between an AI company and a defense agency could set a precedent for how leading AI providers work with public institutions. The outcome may also influence how AI vendors are treated in defense procurement.