New Delhi, Sept. 26 -- that the model's refusals made it unreliable, and a federal appeals court agreed that was reason enough to cut Anthropic out of the Defense Department's supply chain entirely.

The U.S. Court of Appeals for the D.C. Circuit ruled 2-1 on Friday that the Department of War, as the Pentagon is now formally named, had ample grounds to designate Anthropic a supply chain risk under a 2018 federal security law. Judge Gregory Katsas, writing for the majority and joined by Judge Neomi Rao, found that Claude's built-in restrictions had "on more than one occasion" stopped the model from completing tasks government users requested, and that a dispute over whether those restrictions applied during an active overseas military oper...