A federal ‌appeals ​court on Friday declined to block a Defense Department order blacklisting Anthropic from government ⁠contracts and deeming the ⁠AI startup a national security risk.

The ruling from the US Court of ⁠Appeals for the District of Columbia Circuit ⁠came in a lawsuit by Anthropic challenging its designation by the Pentagon as a national security supply ​chain risk, ‌which the startup says has ⁠cost it ​billions ⁠of dollars ⁠in lost business and damaged its reputation ahead ⁠of a highly anticipated initial ‌public offering.

The designation ⁠has been blocked by a ​judge overseeing a separate ⁠legal challenge ⁠in ‌California federal court.

This is a developing story. Please check back for updates.