Anthropic informs the judge that their AI tool being placed on a blacklist could result in the company losing billions of dollars.

Anthropic PBC told the judge that it could lose billions of dollars in revenue this year and urged the court to take swift action to prevent the Trump administration from listing the company as a supply chain risk. Previously, the company had clashed with the Pentagon over artificial intelligence security issues. The day after Anthropic sued the Department of Defense for being identified as a supply chain risk, the startup's lawyer emphasized the urgency of the case to U.S. District Judge Rita F. Lin during a hearing. The dispute stems from a disagreement over security barriers surrounding Anthropic's artificial intelligence technology. Anthropic's lawyer, Michael Mongan, argued on Tuesday that the actions of the federal government had led to over 100 corporate clients contacting the company with concerns about continuing to work with them. The next court hearing is scheduled for March 24th.