Just-In: Elon Musk-Backed Anthropic Faces Lawsuit Over Claude AI Amid SpaceX Hype

Kritika Mehta
Updated
Kritika Mehta

Kritika Mehta

News Writer & Journalist
Kritika boasts over 4 years of experience in the financial news sector. Currently working as a crypto journalist at Coingape, she has consistently shown a knack for blockchain technology and cryptocurrencies. Kritika combines insightful analysis with a deep understanding of market trends. With a keen interest in technical analysis, she brings a nuanced perspective to her reporting, exploring the intersection of finance, technology, and emerging trends in the crypto space.
Read full bio
coingape google news
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
BREAKING: OpenAI Rival Anthropic Confidentially Files For IPO After Elon Musk's SpaceX
Sponsored This page may contain affiliate links. If you sign up through these links, we may earn a commission at no additional cost to you. This does not influence our editorial reviews or rankings.

Highlights

  • Elon Musk's SpaceX partner Anthropic has been sued by one of its consumers.
  • The lawsuit accuses the AI firm of misleading users on the usage restrictions on Claude AI's premium plan.
  • The legal action could put Anthropic's IPO plans under fire.

Anthropic, the artificial intelligence firm affiliated with Elon Musk’s SpaceX, is now facing a class-action lawsuit. The suit centers around the pricing model for its premium “Claude” AI subscription, which allegedly misleads users on the usage limits.

Anthropic Slapped With Lawsuit Over Claude AI Subscription

The lawsuit was filed Monday in the U.S. District Court for the Northern District of California on behalf of Karl Kahn from Washington, D.C. it seeks class-action status for people who have paid for Anthropic’s higher-tiered plans for the Claude model since April 2024. Despite partner SpaceX IPO hype and even Anthropic’s own IPO plans, the move hints at waning consumer trust.

The crux of the issue is the subscription tiers, with Anthropic’s Max 5x subscription plan at $100/month and Max 20x at $200/month. These plans are marketed as ones that offer five times and 20 times the amount of usage in the company’s standard Pro plan.

However, according to the lawsuit, subscribers are not getting the access they are expecting based on those offers. The complaint states that “the actual usage provided by the Max 5x and Max 20x plans is far below the advertised amount of usage.” The filing also says that the restrictions are difficult for customers to understand or predict.

Nonetheless, Anthropic is not alone in facing legal action in the AI industry. Recently, Sam Altman’s OpenAI was also hit by a multistate probe over alleged user harm due to the use of its ChatGPT chatbot. The move grabbed market attention as it came on the heels of OpenAI’s confidential IPO filing.

Plaintiff Details His Experience With Claude AI

Kahn noted that he switched to the Max 20x plan when he started using the software more for coding and development than for casual use in April. According to the complaint, “a single five-hour work session consumed 15% of his weekly allotment.” He added that this puts him at a disadvantage to continue working.

Consequently, Kahn allegedly “found himself needing either to halt his work, ration his usage, or purchase additional usage to ensure that he could complete his work,” the filing states.

The lawsuit also references emails Anthropic allegedly sent to subscribers in July 2025. These mails outlined the expected weekly usage of various Claude models and tiers for each subscription. Those disclosures emphasize plaintiffs’ argument that the limits to access are not in line with the promoting of these services.

Moreover, the complaint asks that Anthropic’s marketing be deemed fraudulent and/or misleading. It seeks relief for affected subscribers. It has put the much-awaited Anthropic IPO under scrutiny.

Anthropic declined to comment on the lawsuit, The Wall Street Journal reported.

If you’re looking for decentralized futures trading, visit our page on Perp DEXs.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Newsletter
Your crypto brief.
Delivered every day.
  • Insights that move markets
  • 100,000 active subscribers
By signing-up you agree to our Terms and Conditions and Privacy Policy.
About Author
About Author
Kritika boasts over 4 years of experience in the financial news sector. Currently working as a crypto journalist at Coingape, she has consistently shown a knack for blockchain technology and cryptocurrencies. Kritika combines insightful analysis with a deep understanding of market trends. With a keen interest in technical analysis, she brings a nuanced perspective to her reporting, exploring the intersection of finance, technology, and emerging trends in the crypto space.