An artificial intelligence startup using Anthropic’s advanced models has sued the U.S. Commerce Department, claiming that new export controls blocking foreign nationals from accessing the Fable 5 and Mythos 5 models have caused severe operational harm and existential business risk. The lawsuit, filed June 23 in Washington federal court, challenges a June 12 directive from the Commerce Department’s Bureau of Industry and Security that required Anthropic to suspend access for any non-U.S. national, including those working inside the United States. The startup argues these unprecedented restrictions, tied to national security concerns about bypassing AI safety controls, are not legally authorized and threatens to halt its development efforts. This case highlights growing tensions between U.S. AI regulation and the global tech industry, affecting startups and professionals worldwide who rely on Anthropic’s most advanced systems.