Because Anthropic sells Claude through other companies that in turn do business both with Anthropic and the government. These intermediaries, large cloud companies, can't offer Claude anymore if they want to keep the government as a customer.
The government is faaaaaaaaaaaar too invested in Azure and AWS for Microsoft or Amazon to give even half a shit. The DOD has no where else to go and the companies know it. They'll sit on their hands until the legal maneuvers play out, which will take longer than this administration will be in office.
You expect hyperscalers to play chicken with the DoD?
The courts have historically been pretty consistent about giving the DoD whatever the fuck they want, going back to WW2 and even longer for the predecessors of the DoD. I agree that the next administration might reverse it, but the thing is, the government will stay irrational longer than Anthropic will remain solvent.
The US government told every American company to stop doing business with Huawei and they all did it overnight, even when it cost them billions. TSMC stopped fabricating for them, Google pulled Android licensing… The machinery of sanctions compliance is extremely well-oiled and companies fold instantly because the outcome of noncompliance is literally getting thrown in prison.
So is it actually sanctions? I believe Huawei was on the entities list. Such a list comes from the fact that the government can require export licensing. Since Anthropic is in the U.S., I do not believe it’s the same thing as Huawei.
Huawei did eventually end up on the entities list, but there was a gap between when it was initially announced and when it became law, and the divestment from contractors started immediately overnight.
This is also true, unless the government can force them to drop Anthropic on the basis that the alternative- the government dropping them- is unworkable.
Or Pete Hegseth will threaten to do the same to them unless they comply, and they will demonstrate the same inexcusable cowardice the American business class has consistently demonstrated this past year. Hope I'm wrong and this has finally woken them up!
