US appeals court declines to block Pentagon's blacklisting of Anthropic 

NEW YORK, Sept 25 (Reuters) - 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.

(Reporting by Jack Queen in New York, Editing by Franklin Paul)