Anthropic AI Ban Lifted, Lawsuit Continues

Anthropic's Fable 5 and Mythos 5 AI models are back online for foreign nationals. The government order that forced them offline has been lifted. However, the lawsuit filed by Legion LegalTech Corp against the U.S. government continues. A judge has ordered the government to respond to Legion's motion for a preliminary injunction by July 14. The Commerce Department's Bureau of Industry and Security, under Secretary Howard Lutnick, initially ordered Anthropic to cut off Fable 5 and Mythos 5 for all foreign nationals on June 12. This was due to national security concerns. Anthropic stated the government did not provide specifics. Because Anthropic had no reliable way to check nationality at scale, it shut down both models globally. Legion LegalTech Corp, an AI software startup, sued on June 23. Its Canadian development team was impacted by the shutdown. Legion argues the order exceeded the government's authority. Commerce lifted the export controls on June 30, and Anthropic redeployed its models with nationality-based access gating. This ongoing legal battle highlights complexities in AI export policy, even after commercial issues are resolved.