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netinstructionstoday at 2:35 AM3 repliesview on HN

This is kind of crazy. Instead of just cancelling a mutually-agreed upon contract where Anthropic refused to bow to sudden new demands, the Dept of Defense went straight to the nuclear option: threatening to label an American tech company as a "supply chain risk" which is a heavy-handed tactic usually reserved for foreign adversaries (think Huawei or DJI).

It's also incoherent that the DoD/DoW was threatening to invoke the Defense Production Act OR classifying them as "supply chain risk". They're either too uniquely critical to national defense OR they're such a severe liability that they have to be blacklisted for anyone in the DoD apparatus (including the many subcontracts) to use.

How are other tech companies supposed to work with the US government and draw up mutual contracts when those terms are suddenly questioned months later and can be used in such devastating ways against them? Setting the morals/principals aside, how does this make for rational business decision to work with a counterparty that behaves this way.


Replies

solenoid0937today at 2:51 AM

Are they just threatening to label? It seems to me like they have already labeled.

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michaelhoneytoday at 5:09 AM

It is indeed kind of crazy. That's because the current US administration is composed of people whose sole qualification is being able to work for Donald Trump. Being competent, rational or ethical is career-limiting.

surgical_firetoday at 2:57 AM

A question - being considered a supply chain risk is the same as being sanctioned? Or does it only affect their ability to be a defense supplier in the US (even if transitively?)

It's an honest question by the way - not trying to throw any gothas.

Just trying to understand if comoanies or people that don't orbit defense contracting are free to operate with Anthropic still or risk being sanctioned too.

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