Microsoft Pledges to Protect European Operations, Unveils Data Center Expansion

A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. (Reuters)
A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. (Reuters)
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Microsoft Pledges to Protect European Operations, Unveils Data Center Expansion

A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. (Reuters)
A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. (Reuters)

Microsoft pledged Wednesday to fight any US government order to halt data center operations in Europe as it sought to soothe concerns among European customers that trans-Atlantic tensions would lead to service disruptions.

The company's president, Brad Smith, said it's not something that officials are talking about in Washington, D.C. but it is a “real concern” for Microsoft's customers across Europe, which include governments.

President Donald Trump has stoked tensions between the US and Europe with his tariff-fueled trade war, and alarmed European leaders with policy changes, including pausing intelligence sharing with Ukraine, that throw into doubt his administration's commitment to the trans-Atlantic relationship, The AP news reported.

Smith, speaking at an event in Brussels, tried to allay concerns as he announced that the company was expanding data center operations across Europe.

“What we want Europeans to know is that they can count on us,” he said in a speech.

“In the unlikely event we are ever ordered by any government anywhere in the world to suspend or cease cloud operations in Europe, we are committing that Microsoft will promptly and vigorously contest such a measure using all legal avenues available, including by pursuing litigation in court,” Smith wrote in a Wednesday blog post.

He noted that Microsoft has experience fighting lawsuits from the previous Trump administration as well as from former President Barack Obama’s administration.

“If we ever find ourselves losing we will put in place business continuity arrangements” that include storing computer code in Switzerland that European partners can access, he said.

Microsoft is making five digital commitments to Europe, including increasing its data center capacity by 40 in 16 countries over the next two years, Smith said. The expansion will cost tens of billions of dollars annually. Smith declined to be more specific about the cost when asked by reporters.

The expansion comes amid calls for Europe to assert tech and data sovereignty by weaning itself off reliance from big US cloud data service providers, including Microsoft, Amazon and, to a lesser extent, Google.

“Given recent geopolitical volatility, we recognize that European governments likely will consider additional options,” and Microsoft is committed to collaborating with European companies, Smith said.



Reddit Sues AI Giant Anthropic Over Content Use

Dario Amodei, co-founder and CEO of Anthropic. JULIEN DE ROSA / AFP
Dario Amodei, co-founder and CEO of Anthropic. JULIEN DE ROSA / AFP
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Reddit Sues AI Giant Anthropic Over Content Use

Dario Amodei, co-founder and CEO of Anthropic. JULIEN DE ROSA / AFP
Dario Amodei, co-founder and CEO of Anthropic. JULIEN DE ROSA / AFP

Social media outlet Reddit filed a lawsuit Wednesday against artificial intelligence company Anthropic, accusing the startup of illegally scraping millions of user comments to train its Claude chatbot without permission or compensation.

The lawsuit in a California state court represents the latest front in the growing battle between content providers and AI companies over the use of data to train increasingly sophisticated language models that power the generative AI revolution.

Anthropic, valued at $61.5 billion and heavily backed by Amazon, was founded in 2021 by former executives from OpenAI, the creator of ChatGPT.

The company, known for its Claude chatbot and AI models, positions itself as focused on AI safety and responsible development.

"This case is about the two faces of Anthropic: the public face that attempts to ingratiate itself into the consumer's consciousness with claims of righteousness and respect for boundaries and the law, and the private face that ignores any rules that interfere with its attempts to further line its pockets," the suit said.

According to the complaint, Anthropic has been training its models on Reddit content since at least December 2021, with CEO Dario Amodei co-authoring research papers that specifically identified high-quality content for data training.

The lawsuit alleges that despite Anthropic's public claims that it had blocked its bots from accessing Reddit, the company's automated systems continued to harvest Reddit's servers more than 100,000 times in subsequent months.

Reddit is seeking monetary damages and a court injunction to force Anthropic to comply with its user agreement terms. The company has requested a jury trial.

In an email to AFP, Anthropic said "We disagree with Reddit's claims and will defend ourselves vigorously."

Reddit has entered into licensing agreements with other AI giants including Google and OpenAI, which allow those companies to use Reddit content under terms that protect user privacy and provide compensation to the platform.

Those deals have helped lift Reddit's share price since it went public in 2024.

Reddit shares closed up more than six percent on Wednesday following news of the lawsuit.

Musicians, book authors, visual artists and news publications have sued the various AI companies that used their data without permission or payment.

AI companies generally defend their practices by claiming fair use, arguing that training AI on large datasets fundamentally changes the original content and is necessary for innovation.

Though most of these lawsuits are still in early stages, their outcomes could have a profound effect on the shape of the AI industry.