Trump Administration Won't Rule Out Further Action Against Anthropic

"I am not prepared to offer any commitments on that issue," James Harlow, a Justice Department attorney, told US district judge Rita Lin over video conference on Tuesday. In fact, the government is gearing up to take another step designed to sideline the company from doing business with federal agencies. President Trump is currently finalizing an executive order that would formally ban usage of Anthropic tools across the government."

"Anthropic filed against the Trump administration on Monday, alleging that the government unconstitutionally designated it a supply-chain risk and turned it into a tech industry pariah. Billions of dollars in revenue for Anthropic is now at risk, with current customers and prospective ones dropping out of deals and demanding new terms, according to the company."

"The actions of defendants are causing irreparable injuries, and those injuries are mounting day by day," Mongan said. Anthropic is eager for a preliminary hearing to happen soon to prevent further harm to its business, with the attorney less concerned about delaying until April if the Trump administration could commit to not taking additional action."

Anthropic, an AI startup, challenged federal sanctions imposed by the Trump administration in court, seeking suspension of its supply-chain risk designation and protection from further punitive measures. The Justice Department refused to commit to halting additional penalties, and the administration is preparing an executive order to formally ban Anthropic tools from government use. The company faces billions in revenue loss as customers and prospects withdraw from deals. Anthropic filed two lawsuits alleging unconstitutional designation and seeking a preliminary court order. During Tuesday's hearing before Judge Rita Lin, Anthropic's attorney emphasized mounting daily injuries to the business. The judge scheduled a preliminary hearing for March 24 in San Francisco.

Read at WIRED