> isn't Microsoft forced, by law, to cooperate with the US government and US military?

Microsoft and other cloud companies are not forced to do anything the US government or US military tells them to do. You are just making this up.

Technically the government can force some industries to do some things. (and that's just officially. The singer sewing machine company didn't need to be forced into weapons manufacturing) But, that's a wartime measure, if the government forced every steel mill in the country to produce for them, I'm not sure it'd even have to go to the supreme court.