Anthropic PBC told a judge it could lose as much as billions of dollars in revenue this year and urged quick action on its request to block the Trump administration’s declaration of the company as a supply-chain risk after a blowup with the Pentagon over artificial intelligence safety issues.

A lawyer for the startup made a case for urgency to U.S. District Judge Rita F. Lin at a hearing a day after Anthropic sued the Defense Department for designating the company as a risk to the U.S. supply chain. The dispute stems from a high-stakes dispute over safeguards on Anthropic’s AI technology.

Michael Mongan, an attorney for Anthropic, argued Tuesday that the federal government’s actions have led to more than 100 enterprise customers contacting the company to express doubt about continuing their work with Anthropic.

He also said that a financial services company paused its negotiations with Anthropic regarding a $50 million contract. In all, Mongan said that Anthropic’s chief financial officer has estimated harm to its 2026 revenue could range from hundreds of millions of dollars to billions of dollars.

Mongan asked for a commitment from the federal government that it would not take any retaliatory actions against Anthropic before the hearing — such as by issuing an executive order impacting the AI startup.

“I’m not prepared to offer any commitments on that issue,” said James Harlow, a lawyer for the Justice Department.

Another court hearing is set for March 24.

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