I don't think he got it backwards, at least if Hegseth's statement is accurate. AWS, GCP, etc. all do business with DoD. If they, as DoD contractors, are no longer allowed to do business with Anthropic, then presumably they have to stop re-selling or hosting Anthropic's models to anyone.
Does gcp have anything to do with Claude? AWS is the one that has to choose, if AWS picks Anthropic then GCP get all of the DOD. And then google also gets to provide Gemini to the DOD. Thats a nice chunk of change.
Oh you tender babes, trying to logic the meaning of what the lieutenant of the biggest crime syndicate in the world means with his words, as if this was a well thought-out strategy... it's a shakedown; it would make more sense to ask "at least if Hegseth is sober..."