Legion LegalTech Corp, a legal tech firm based in the US, has initiated legal action against the federal government after a controversial directive mandated AI company Anthropic to restrict access to its advanced models for foreign users. Legion argues this mandate, issued by the Commerce Department, has significantly disrupted its operations and affected its Canadian development team.

Anthropic suspended global access to its Fable 5 and Mythos 5 AI models after a US Commerce Department directive, urging AI firms to consider relocating.

Anthropic's clash with regulators over AI export controls raises broader questions about cybersecurity, sovereign AI, and the future of government oversight.