Microsoft to keep using Anthropic’s Claude AI for many clients despite Pentagon’s ‘supply chain risk’ label on startup

Microsoft on Thursday said it will continue using AI startup Anthropic’s Claude AI, embedded in its products for clients, except in projects related to the US Department of Defense.

The statement comes after the Defense Department, which the Trump administration calls the Department of War, sent a formal notice to Anthropic severing its ties with the company and labelling it a ‘supply chain risk’.