Microsoft backs Anthropic in landmark court battle against US government blacklist. The Claude AI maker faces potential billion-dollar revenue losses after the Trump administration labeled it a supply chain risk, allegedly retaliating for its AI safety standards. Over 100 enterprise customers have expressed concerns about continuing contracts. Anthropic claims the government is pressuring customers to switch providers. Microsoft warned the blacklisting threatens the entire AI ecosystem and American business competitiveness. The dispute centers on Pentagon negotiations over classified AI use, where Anthropic refused to compromise on safety guardrails. This case could reshape government-tech relations and AI industry regulation.
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