Microsoft Seeks Injunction to Block Pentagon Anthropic Blacklist, Protect $50M Deal
Microsoft urged a federal court to block the Defense Department’s supply-chain risk designation of AI startup Anthropic, seeking a preliminary injunction ahead of a March 24 hearing. Anthropic warns the blacklist has already paused a $50 million contract and could slash 2026 revenue by hundreds of millions to billions.
1. Microsoft Files for Preliminary Injunction
Microsoft filed a legal brief in US District Court asking Judge Rita F. Lin to grant a temporary injunction blocking the Defense Department’s supply-chain risk designation of Anthropic. The filing argues that the Pentagon’s blacklist jeopardizes Microsoft’s strategic AI partnership and could undermine enterprise customer confidence in Anthropic-based services. Microsoft seeks an order preventing any enforcement or retaliatory actions against Anthropic until the court fully reviews the case.
2. Anthropic Warns of Revenue Loss and Hearing Update
Anthropic’s counsel told the court that over 100 enterprise clients have expressed doubts about continuing AI engagements and that a financial services firm paused negotiations on a $50 million deal. The company’s CFO estimates potential 2026 revenue losses ranging from hundreds of millions to billions of dollars. A hearing originally set for April 3 was moved up to March 24 to address Anthropic’s urgency in overturning the supply-chain risk label and related federal directives.