Microsoft seeks order to block Pentagon AI ban, secures $19B Nebius cloud deal

MSFTMSFT

Microsoft filed an amicus brief to block the Pentagon’s supply-chain risk designation of Anthropic, warning forced removal of its AI model could disrupt federal contracts and hamper US warfighters. Nebius agreed an AI infrastructure deal valued at over $19 billion with Microsoft to deploy 5 GW of Nvidia systems by 2030.

1. Microsoft’s Legal Support for Anthropic

Microsoft filed an amicus brief in the US District Court for the Northern District of California seeking a temporary restraining order to block the Pentagon’s designation of Anthropic as a supply-chain risk. The filing warns that mandating the immediate removal of Anthropic’s Claude model, which enforces safeguards against mass surveillance and autonomous weapons, could disrupt ongoing federal projects and impair US warfighters.

2. Details of Pentagon Supply-Chain Designation

The Department of Defense’s supply-chain risk designation halted all Anthropic contracts after the company declined to remove military use restrictions from its AI model. Critics argue the directive is vague and ill-defined, extending beyond routine contract disputes and raising constitutional questions about corporate speech protections.

3. $19 B Nebius AI Infrastructure Deal

Separately, Microsoft secured a multi-year AI infrastructure agreement with Nebius valued at more than $19 billion, under which Nebius will deploy 5 GW of Nvidia GPU systems by 2030. The deal strengthens Microsoft’s Azure cloud AI capacity, positioning it to support large-scale AI workloads and compete with hyperscale providers.

Sources

FF