NurPhoto / Getty Images

Anthropic and the Justice Department will argue their case Tuesday before a federal appeals court in Washington, D.C., over the Defense Department's designation of the AI company as a supply-chain risk. Fifteen minutes are allotted to each side, after which the three-judge panel will deliberate and release a written ruling, according to CNBC.

Sitting on the bench are Judge Karen Henderson, Judge Gregory Katsas, and Judge Neomi Rao.

Anthropic sued Defense Secretary Pete Hegseth and the DOD in March after the agency declared it a supply-chain risk — a label historically applied to foreign adversaries. Under the designation, any contractor working with the military must sign off that Claude models play no role in that work.

The government's pre-argument brief warned that Anthropic's ability to "encode limitations" into its models amounts to an "untenable national-security risk." According to the brief, Hegseth concluded the company had "undermined the substantial trust required to sustain the relationship" by being positioned to "manipulate its model to enforce its own moral and policy judgments about the military's appropriate use of the technology."