alt Hacker NewsThis could kill Anthropic.
The designation says any contractor, supplier, or partner doing business with the US military can’t conduct any commercial activity with Anthropic. Well, AWS has JWCC. Microsoft has Azure Government. Google has DoD contracts. If that language is enforced broadly, then Claude gets kicked off Bedrock, Vertex, and potentially Azure… which is where all the enterprise revenue lives. Claude cannot survive on $200/mo individual powerusers. The math just doesn’t math.
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Not entirely true.
The designation only applies to projects that touch the federal government, or software developed specifically for the federal government.
Contractors can still use Claude internally in their business, so long as it is not used in government work directly.
A complete ban would be adding Anthropic to the NDAA, which requires congress.
The DoD designation allows the DoD to make contractors certify that Anthropic is not used in the fulfillment of the government work.
It is narrower than that by law, though not by their proclamation.
That label forbids contractors on DoD contracts for billing DoD for Anthropic, or including Anthropic as part of their DoD solution.
So - AWS can keep claude on bedrock, but can't provide claude to the DoD under its DoD contracts
From what I’ve heard the actual restriction is just on using Claude for stuff they’re doing for the Pentagon. They’ll keep using Claude for everything else and be less effective when they work for the government, and that’s fine because everyone else working for the government will have the same handicap.
This will likely go to court, again as Dario has stated this is blatant retaliation as no US company has ever been designated a supply chain risk and they continue to operate on classified systems for 6 more months.
I’m sure most of their revenue is large enterprise customers who serve government with their products - this looks very bad
There's going to be a TRO against the attempt by like 9 AM Monday, and the bad faith from the government couldn't be more obvious. All it's really going to do is cost them some extremely expensive lawyer time.
> This could kill Anthropic
I am both dumb and without access to Claude, thus I must ask: My fellow smart HN'ers, what kind of impacts would this likely have on the economy?
Has a lot of money and resources not been pumped into Anthropic (albeit likely less than OpenAI)? I imagine such a decision would not be the ROI that many investors expected.
No, Anthropic could easily call their bluff.
None of the hyper scalers are going to stop offering Claude. All of the big 3 have invested billions of dollars into Anthropic, and have tens (if not hundreds) of billions more tied up in funding deals with them. Amazon and Google are two of the largest shareholders of Anthropic.
Anthropic is going to be fine. The DoD is going to walk this back and pretend it never happened to save face.