The U.S. Department of Justice has filed a notice of appeal with the Ninth Circuit, seeking to overturn an August ruling by a California court and reinstate a government-wide federal ban targeting Anthropic, the developer of Claude. The appeal was filed on Oct. 26 local time, the same day Anthropic publicly submitted its IPO prospectus. Earlier, in September, a Washington appeals court had already allowed the Pentagon to exclude Claude from military systems and related defense procurement on supply-chain risk grounds. The California court had blocked a broader measure that would have required all federal agencies to stop using Claude and would also have barred defense contractors from engaging in non-military commercial dealings with Anthropic. The judge said the government had not shown sufficient evidence of the alleged risks and found that the ban was effectively retaliation for Anthropic’s public criticism of the government. Anthropic’s prospectus said government contract revenue accounts for only about 1% of its total revenue. Evidence cited by the California court said three government contractors ended, or were told to end, contracts with Anthropic, while three near-final deals worth more than $180 million fell through. Anthropic had also told the court that if the broadest ban were fully enforced, its 2026 revenue could drop by billions of dollars.
The U.S. Department of Justice has filed a notice of appeal with the Ninth Circuit, seeking to overturn an August ruling by a California court and restore a government-wide federal ban on Anthropic, the developer of Claude.
Anthropic publicly filed its IPO prospectus on Oct. 26 local time. The Justice Department lodged the appeal the same day.
In September, a Washington appeals court allowed the Pentagon to exclude Claude from military systems and related defense procurement, citing supply-chain risk. The California court had blocked a broader restriction. That measure would have required all federal agencies to stop using Claude and would also have barred defense contractors from maintaining non-military commercial relationships with Anthropic.
The judge said the government had not provided sufficient grounds to prove the alleged risks and found that the ban was effectively retaliation for Anthropic’s public criticism of the government.
Anthropic’s prospectus said revenue from government agency contracts accounts for only about 1% of its total revenue. Evidence cited by the California court said three government contractors terminated contracts with Anthropic, or were instructed to do so. Another three deals, together worth more than $180 million and previously close to completion, collapsed. Some customers asked for added unilateral termination clauses, while others shifted to competitors.
Anthropic had previously told the court that if the broadest version of the ban were fully implemented, its 2026 revenue could be reduced by billions of dollars.
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