> completely understandable decision from a neutral third party PoV.
Except it's not, really. If Anthropic/Claude doesn't mean the DoD's need, they can and should just put out an RFP for other LLM providers. I'm sure there's plenty of others that'd happily forgo their morals for that sweet government contract money.
No US company has to provide services to the DoD or any other branch of government. It's not "veto power" it's being selective of who you do business with, which is 100% legal.
I don't understand your point here. Looks like what you suggest is exactly what is happening. US government did not ban Anthropic from conducting business in the US. They just don't want them to influence their own supply chain, 100% legal as you say.