This whole event was precipitated by Palantir using Claude in the Maduro raid, and news of this surprising Anthropic and resulting in them asking questions and maybe suggesting in private discussions that they took issue with this and wanted to introduce more posttraining limits on the ways their model was used by the department. This has been widely reported and I don’t think anyone is really disputing that.

If that’s true, then what you’re suggesting is absurd. Because it’s not enough for the pentagon to merely stop contracting with Claude, because that was never the problem in the first place from their risk model. Their problem was they had a prime contract with Palantir for their wargaming service, and Palantir subcontracted with Anthropic as an LLM provider. So if DoD ceased to contract with Anthropic directly, it would have no impact on the risk that Anthropics new posttraining limits potentially posed to their mission insofar as they are reliant on Palantir and it’s services and there would be nothing preventing Palantir from continuing to contract with Anthropic.

I have to ask, what other tool do you think they have to protect themselves from this? You can argue that these guardrails from Anthropic are useful and important and DoD should just accept that, and that’s fine, but it really is (and ought to be) the departments decision about whether they’re comfortable with that or not. It’s their call. They have access to information on our adversaries that the public doesn’t. And they’re the ones responsible when lives are lost. And if they’re not comfortable with trusting service member lives to a specific post trained Opus 4.6 model, I’m not sure what other avenue they have to solve that problem across their entire prime contracting space other than a supply chain risk designation.

Any sort of backroom dealings where they whisper off the record to defense CTOs that they have a problem with anthropics leadership and would prefer that they sub out to OpenAI or Gemini instead for LLM services would be totally illegal and a violation of procurement law. So they definitely can’t do that. A supply chain risk designation is the only real tool they have to single out a single company.

One thing worth noting: Anthropic is a PBC, which is a new corporate structure that makes it relatively unaccountable to traditional profit motives. But those traditional profit motives are precisely the carrot that the DoD relies on dangling in front of the industry to motivate companies toward its mission. Traditional for profit companies are lead by people who have a fiduciary responsibility to maximize profit by serving the government. The entire procurement process relies on companies being motivated by profit and competing through bids. But PBCs are specifically designed to remove that incentive structure from their decision making, which makes them entirely unalike every other defense contractor which is publicly traded and can be held legally responsible by shareholders for putting personal beliefs above increasing shareholder value. That sounds like… exactly the kind of thing you don’t want in your military supply chain.