Trump administration defends Anthropic blacklisting in federal court while seeking to use the company's AI models

The Trump administration argued in D.C. Circuit Court of Appeals on Tuesday that Anthropic poses a supply chain risk due to its refusal to accept the Pentagon's "all lawful use" standard for AI deployment and its stated unwillingness to support mass surveillance or autonomous weapons. The court expressed skepticism of the government's position, with a judge calling the designation "a spectacular overreach." The case highlights a contradiction: the administration simultaneously blacklists Anthropic as a national security threat while exploring how to adopt its Mythos model for cybersecurity purposes.