That's a nice straw man you got there. I don't mind you characterizing the negotiation however you want. That's not the debate. Call it "shakedown" or "mafia" as someone else mentioned, or whatnot (although it is appears the company that was trying to grandstand the elected US Government by dictating their own terms was Anthropic, not the other way around, but I digress). The question is was it a breach of contract or just a tough negotiation?
Companies have gone out of business due to a big customer pulling the contract. Imagination Technologies comes to mind. This is not a rare thing in business.
I have to admit, “accept this unilateral change to the contract or we will use the full power of the US government to destroy your company” is certainly a tough negotiation stance. You got that part right.