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【AI + National Defense】Anthropic states its AI tools have been blacklisted, potentially causing the company to lose billions of dollars
U.S. AI startup Anthropic told a judge at a hearing that it could lose billions of dollars in revenue this year and urged the court to act quickly to prevent the Trump administration from listing the company as a supply chain risk. The day after Anthropic was sued by the Department of Defense for being designated as a supply chain risk, Anthropic’s lawyer emphasized the urgency of the case to U.S. District Judge Rita F. Lin.
Anthropic’s lawyer, Michael Mongan, argued that the federal government’s actions had caused over 100 corporate clients to contact Anthropic, raising questions about continuing their partnerships. He also stated that a financial services company had paused negotiations with Anthropic over a $50 million contract. Mongan said that Anthropic’s CFO estimates that the incident could result in hundreds of millions to billions of dollars in lost revenue for the company by 2026.
Michael Mongan requested that the federal government commit not to take any retaliatory actions against Anthropic before the hearing, such as issuing an administrative order affecting the company. Department of Justice lawyer James Harlow said, “We are not prepared to make any commitments on this matter.”
Recently, Anthropic filed a lawsuit against the U.S. Department of Defense, claiming that the government’s decision to list the company as a “supply chain risk” was illegal and violated its First Amendment rights. On March 5, the Department of Defense officially added Anthropic to the supply chain risk list, marking the first time the U.S. government has used a blacklist tool against an American company.
The next court hearing is scheduled for March 24.