Microsoft takes Anthropic's side in DOD fight, warns it sets a new precedent

"Microsoft is arguing for a temporary restraining order on enforcement of the determination. Microsoft believes the ban would harm the company and other contractors that have deeply embedded Anthropic's technology into their products. A restraining order would also buy time for the two sides to resolve their dispute."

"Microsoft argues that DOD's determination is an unprecedented use of the statute that describes "supply chain risk." This statute has never been used against a U.S. company before and has only been used against one foreign company, the Switzerland-headquartered Acronis AG."

""The determination has, without explaining the basis, labeled Anthropic a 'supply chain risk' against whom extraordinary measures are needed 'to protect national security,'" Microsoft wrote. "The authority for the determination itself permits this action only against an adversary that poses an articulated threat to the United States.""

Microsoft filed an amicus brief in U.S. District Court in Northern California supporting Anthropic's lawsuit challenging the Defense Department's designation of the company as a supply chain risk. Microsoft argues for a temporary restraining order on enforcement of this determination, contending that the ban would harm Microsoft and other contractors using Anthropic's technology. Microsoft claims the DOD's action represents an unprecedented use of supply chain risk statutes, which have never been applied to a U.S. company before. The company argues this sets a dangerous precedent threatening all government contractors. Microsoft characterizes the determination as drastic and lacking explanation, asserting that the authority permitting such action should only apply to adversaries posing articulated threats to the United States.

Read at Nextgov.com