Anthropic filed suit in federal court after the Department of Defense designated the company a "supply‑chain risk," a move that the AI firm says has already cancelled government contracts and imperils hundreds of millions in private work. The complaint calls the administration’s designation "unprecedented and unlawful" and seeks to block the labeling and its commercial fallout. The dispute arrives as major vendors double down on enterprise AI: Microsoft announced Copilot Cowork, a new Microsoft 365 feature built on Anthropic’s Claude model to run long‑running, multi‑step agent tasks inside customers’ tenants. Microsoft says the product integrates Anthropic‑powered reasoning with enterprise protections. Campuses that use commercial AI models for research, learning analytics and administrative automation now face a dual risk: rapid vendor disruption from government action and shifting commercial partnerships as cloud and AI providers reposition their offerings for regulated markets.