Federal agency decisions are creating friction for the AI startup Anthropic as it prepares for a public listing. In its IPO prospectus, the company warned that the US government's attitude toward its operations could lead to "material revenue losses or business disruptions," even though government contracts account for less than 1% of its annual revenue. The filing states that tensions with Washington could damage the company's reputation and relationships with partners, employees, and commercial customers.

Anthropic cited specific pressures in its disclosure, including a directive from Donald Trump that prohibited federal agencies from using its models and a Pentagon designation of the firm as a national-security supply-chain risk. The company also noted that restrictions from the US Commerce Department on the Fable 5 and Mythos 5 models forced it to disable both tools for its entire user base. The filing, first reported by Reuters, signals that regulatory conflicts could derail the company's broader commercial growth.