A federal appeals court in Washington D.C. has refused to block the Pentagon from blacklisting artificial intelligence laboratory Anthropic. This decision differs from the conclusions of another judge's ruling on the same issues. Anthropic had previously prevailed in a separate case in San Francisco, where a judge had ordered the Trump administration to remove a label identifying the company as a national security risk. The dispute over how the Pentagon could use its Claude chatbot in fully autonomous weapons and potential surveillance of Americans is still being investigated. Anthropic claims that the administration is engaging in an "unlawful campaign of retaliation" due to its attempts to limit how its AI technology can be used. The conflicting court decisions could further complicate the business landscape at a crucial time for the industry.