WINNERS & LOSERS: The US government is being sued by an AI startup for halting access to Anthropic's Fable 5 model, which was available for only three days this month. Legion says that every day it goes without access to Claude Fable 5, the company's ability to survive is being eroded.
Legion filed the lawsuit in Washington, D.C., federal court, challenging a June 12 directive from the Commerce Department's Bureau of Industry and Security.
The order required Anthropic to block any foreign national, inside or outside the United States, from using Fable 5 and Mythos 5. Anthropic responded by turning off access to the models for everyone while it worked out how to comply.
That was a problem for Legion, a San Jose-based legal tech startup that builds AI tools for lawyers.
The company says its software can draft pleadings, discovery requests, motions, and other court documents. It also employs Canadian nationals who work remotely from Canada, meaning parts of its development team were cut off even after Anthropic restored Fable 5 with nationality-based access controls and extra compliance screening.
