Microsoft has publicly supported Anthropic, stating it will continue deploying its AI models despite the U.S. Department of War labeling Anthropic a "supply chain risk." This designation has halted talks between Anthropic and the Pentagon on defense applications, and Anthropic's CEO plans to challenge the decision in court.
The article details a feud between Anthropic's CEO and the Trump administration, alleging the scrutiny stems from a refusal to praise the president, a claim for which the CEO later apologized. It also covers criticism from OpenAI's CEO about companies abandoning democratic norms over political disagreements.
Further topics include the strategic Microsoft-Anthropic partnership and Anthropic's significant recent funding and revenue growth. Other investors have expressed concern over the Pentagon's designation, warning of broader implications for the tech sector.
Main Topics: Microsoft's support for Anthropic, U.S. government scrutiny and legal challenge, the Anthropic-Trump administration feud, industry reactions, and the Microsoft-Anthropic partnership and financials.
Microsoft has come out in support of the artificial intelligence (AI) company Anthropic, which is under scrutiny by the US Department of War. The Dario Amodei-led company was labelled a âsupply chain riskâ by the military body earlier today.
Microsoft said it will deploy Anthropicâs AI models in its products even after the US-based companyâs feud with the Pentagon.
CNBC reported on Friday that the AI majorâs products, including Claude, continue to remain accessible to customers.
âOur lawyers have studied the designation and have concluded that Anthropic products, including Claude, can remain available to our customers other than the Department of War through platforms such as M365, GitHub, and Microsoftâs AI Foundry,â a Microsoft spokesperson told CNBC.
The designation, media reports said, appears to have ended recent talks between Anthropic and the Pentagon on how its AI models could be used in defence settings. CEO Dario Amodei said the company will challenge the decision in court.
Amodei-Trump feud
In an internal message to employees, Amodei said the administration was targeting Anthropic because it refused to offer what he described as âdictator-style praiseâ to President Donald Trump, contrasting the companyâs stance with that of other AI firms, such as rival OpenAI.
Later, Amodei apologised for how he handled a crisis after an internal memo strained the companyâs relationship with the US government. In an interview with The Economist, he said events involving Donald Trump, the Department of War, and another AI provider unfolded within hours.
A day before, OpenAI chief executive Sam Altman took a swipe at rival AI firm Anthropic, saying it would be harmful for society if companies abandoned democratic norms simply because they disagreed with the political leadership in power.
Altman added that governments should ultimately hold more authority than private companies and warned against corporate decisions that undermine democratic processes.
Microsoft-Anthropic partnership
Anthropic raised $30 billion in its latest funding round, more than doubling the Claude chatbot maker's valuation to $380 billion. Microsoft was reported to be one of the investors, the others being D E Shaw Ventures, ICONIQ, Nvidia, and MGX, among others.
Anthropic has rapidly built its revenue base â the company said its current revenue run rate is $14 billion. For Claude Code alone, the revenue run rate has grown to over $2.5 billion, more than doubling since the beginning of 2026.
Anthropicâs investors, such as Amazon and Nvidia, have earlier raised concerns over the Pentagonâs move to potentially designate the AI startup as a supply-chain risk. In a letter, the Information Technology Industry Council warned that such a label could have wider implications for the tech sector, though it did not directly name Anthropic.
Also Read: ETtech Explainer: Anthropicâs rapid rise, Pentagon standoff and everything in between
Microsoft said it will deploy Anthropicâs AI models in its products even after the US-based companyâs feud with the Pentagon.
CNBC reported on Friday that the AI majorâs products, including Claude, continue to remain accessible to customers.
âOur lawyers have studied the designation and have concluded that Anthropic products, including Claude, can remain available to our customers other than the Department of War through platforms such as M365, GitHub, and Microsoftâs AI Foundry,â a Microsoft spokesperson told CNBC.
The designation, media reports said, appears to have ended recent talks between Anthropic and the Pentagon on how its AI models could be used in defence settings. CEO Dario Amodei said the company will challenge the decision in court.
Amodei-Trump feud
In an internal message to employees, Amodei said the administration was targeting Anthropic because it refused to offer what he described as âdictator-style praiseâ to President Donald Trump, contrasting the companyâs stance with that of other AI firms, such as rival OpenAI.
Later, Amodei apologised for how he handled a crisis after an internal memo strained the companyâs relationship with the US government. In an interview with The Economist, he said events involving Donald Trump, the Department of War, and another AI provider unfolded within hours.
A day before, OpenAI chief executive Sam Altman took a swipe at rival AI firm Anthropic, saying it would be harmful for society if companies abandoned democratic norms simply because they disagreed with the political leadership in power.
Altman added that governments should ultimately hold more authority than private companies and warned against corporate decisions that undermine democratic processes.
Microsoft-Anthropic partnership
Anthropic raised $30 billion in its latest funding round, more than doubling the Claude chatbot maker's valuation to $380 billion. Microsoft was reported to be one of the investors, the others being D E Shaw Ventures, ICONIQ, Nvidia, and MGX, among others.
Anthropic has rapidly built its revenue base â the company said its current revenue run rate is $14 billion. For Claude Code alone, the revenue run rate has grown to over $2.5 billion, more than doubling since the beginning of 2026.
Anthropicâs investors, such as Amazon and Nvidia, have earlier raised concerns over the Pentagonâs move to potentially designate the AI startup as a supply-chain risk. In a letter, the Information Technology Industry Council warned that such a label could have wider implications for the tech sector, though it did not directly name Anthropic.
Also Read: ETtech Explainer: Anthropicâs rapid rise, Pentagon standoff and everything in between
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