Microsoft Backs Anthropic in AI Supply Chain Lawsuit

Microsoft is backing Anthropic in a federal court case to challenge the Trump administration's designation of Anthropic as a supply chain risk. This designation, made by Defense Secretary Pete Hegseth, aims to prevent Anthropic from securing military contracts due to its AI products being labeled a national security threat. The dispute arose after Anthropic refused to allow unrestricted military use of its AI model, Claude. President Donald Trump also ordered all federal agencies to cease using Claude. Microsoft, a significant government contractor, argues that using a supply chain risk designation for a contract dispute could have severe economic consequences and is not in the public interest. Microsoft also supports Anthropic's ethical stance against using American AI for domestic mass surveillance or initiating war without human control. Other entities like AI developers from Alphabet Inc. and OpenAI, and organizations such as the Cato Institute and the Electronic Frontier Foundation, have also filed support for Anthropic.