A legal battle has emerged in the artificial intelligence sector after a US-based AI startup filed a lawsuit against the US government over restrictions affecting access to some of Anthropic’s most advanced AI models.
The startup, Legion, has challenged a government directive that requires Anthropic to keep its latest AI models, Fable 5 and Mythos 5, out of the hands of foreign nationals. The lawsuit was filed in a federal court in Washington shortly after Anthropic disabled access to the models in response to the export control measures introduced by the Trump administration.
Legion, which develops AI-powered tools for legal professionals, said several of its software engineers are Canadian nationals working from Canada. According to the company, losing access to the Fable 5 model has significantly disrupted its operations and product development efforts.
In its court filing, Legion argued that the impact was immediate and severe, stating that the loss of access to the model threatens the company’s ability to compete in the rapidly evolving AI industry. The startup said delays caused by the restriction could result in permanent setbacks that cannot be recovered.
The lawsuit names US Commerce Secretary Howard Lutnick among the defendants. According to the filing, Anthropic was informed that permission from the US government would be required before exporting the Fable 5 and Mythos 5 models outside the country or providing access to foreign nationals regardless of location.
Legion Co-founder and CEO Arthur Rothrock said the company decided to take legal action because it believes the move could set a broader precedent for restrictions on AI companies and their users.
Anthropic said it is working with the administration to address the situation and remains committed to supporting efforts aimed at protecting critical infrastructure while maintaining US leadership in artificial intelligence.
The White House and the Commerce Department had not issued an immediate response to the lawsuit at the time of reporting.
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