My main takeaway from all of this is that Hegseth seems deeply unfit for his job. First there was the Signal leak and now this.

Look, Anthropic is not going to be designated a supply chain risk. 80% of the Fortune 500 have contracts with them. Probably a similar percentage of defense contractors. Amazon is a defense contractor for example. They'd have to remove Claude from their AWS offerings. Everyone running Claude on AWS, boom gone. The level of disruption to the US economy would be off the charts, and for what? Why? Because Hegseth had a bad day? Because he's a sore loser?

If he's decided he doesn't like the DoW's contract then he can cancel it, fine. To try and exact revenge on the best American frontier model along with 80% of the Fortune 500 in the process, to go out of his way to harm hundreds or perhaps thousands of American firms, defies all reason. This is behavior you would expect any adult would understand as petty and foolish, let alone one who's made it to the highest ranks of government.

So I think it's just not going to happen, Trump's statement on the matter notably didn't mention a supply chain risk designation. This suggests to me that Hegseth went off half cocked. The guy is a liability for Trump at this point, I'm guessing he won't last much longer.