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U.S. appeals court upholds designation of Anthropic as supply chain risk

279 pointsby 4h agocnbc.com
367 comments
4h agoHN ↗

I wonder if this is going start being abused soon.

If I was Palantir or any other GOP aligned company, I would be completely against this. What's to stop a Democratic president from doing the same thing and destroying them?

3h agoHN ↗

I’m worried why many big companies aren’t worried about when the shoe is on the other foot.

3h agoHN ↗

None of them really believe our economic or political systems will be recognizable by 2029. Everyone's playing for position in the short takeoff.

3h agoHN ↗

I worry that they don't expect to leave power because they're acting like they will never be held accountable.

3h agoHN ↗

Can you clarify what a GOP aligned company is? Is that any company thats willing to do business with the U.S. government or any businesses thats willing to sell products in red states?

3h agoHN ↗

Maybe it's the companies that flank the US president at events in an attempt to gain favor? Or the companies that own private prisons that lobby for immoral policies on policing?

3h agoHN ↗

This doesn't appear to be unique to the GOP. Plenty of companies flank to whomever is in office. Even at that local government level. "Immoral policies" is subjective and would be in the eye of the beholder. If this was truely quantiative the U.S. wouldn't be a divided nation.

2h agoHN ↗

The mere existence of private prisons in the US is immoral. To argue otherwise is a failure to extrapolate what that means at every level of gov and society. Maybe this isn't uniquely the GOP but private prisons have been some of the largest donors to the GOP since Covid.

1h agoHN ↗

The mere existence of private prisons in the US is immoral.

This doesn't pass a basic logical sniff test.

What if the private prisons provided much greater comfort, rehabilitation, medical and mental care, and so on? How could you call it immoral just for existing?

1h agoHN ↗

That's a great what if despite what we currently know of these prisons and what we know of private companies seeking profit at the expense of whatever you're stating.

There's a country in the 30's that used misinformation to sell what you're suggesting and they, at one point, had a thriving prison system in less than a decade.

Don't be so polyannish.

3h agoHN ↗

You mean the ones that have been doing so for many administrations across both parties?

3h agoHN ↗

Oil and gas and the GOP are one and the same.

Dems still subsidize O&G but they have other constituents they need to pay lip service to.

Banking and finance own both parties.

3h agoHN ↗

I don't see a need to come up with a complete definition at this point. Let's start with cancelling all SpaceX and Palantir contracts and see how we're feeling; that may be enough to keep corporations in line.

3h agoHN ↗

Because there is none. Its rhetoric and its personal to you. Its like me saying I haven't spent a nickle on anything Nike because of their narative selling. Hence anyone who wears Nike products is a bad person. Its ridiculous, narrow minded and undemocratic.

2h agoHN ↗

It's certainly rhetoric! Corporate leaders must be made to understand that the business risk of collaborating with fascism is greater than or equal to the business risk of standing up for the rule of law. Really, we're being generous if we only punish a few companies and only hit their contracts; a strict application of the law would put quite a lot of CEOs behind bars for their overt bribery of the Trump regime.

2h agoHN ↗

Telling my mind about anyone or any company is the ideal expression of free speech and democracy. Using government force against a company that refused a contract is the opposite of democracy.

2h agoHN ↗

It sure isn't democratic when only the top 1 percent in charge make those decisions that inflame you. These companies have thousands, if not tens of thousands of employees, that I can guarantee don't agree on statements or positions that the people at the top make as a company whole. So why would you want you punish people who have nothing to do with this. In the end its the regular employees who pay, not the corporate leadership.

2h agoHN ↗

I am the last person to "enjoy" that openai is getting boycotted. I respect both companies. And openai themselves probably did it under pressure knowing that Trump is a thug.

1h agoHN ↗

Using government force against a company that refused a contract is the opposite of democracy

If democracy is working, isn't using the government to express the collective will of the people exactly how it should work? Else why are we bothering to vote in the first place?

1h agoHN ↗

Collective will of the people cannot supersede your ownership over your business and its right to engage with anyone it wishes to free of government retaliation. The business is people. Feel free to go to a communist country if you want collective action against companies. What other things do you think the collective vote should permit if the numbers tally? Do you support the collective will of the people to gag your free speech? To vote to shoot you dead in the street? Certain rights supersede voting, at least until somehow people manage to repeal the 1st Amendment, 2nd Amendment etc.

2h agoHN ↗

Seems completely rational to me? Why would I do business with a company that doesn't share my moral values? I find the influence money has in politics more undemocratic than anything else.

1h agoHN ↗

I doubt any company shares your moral values. Though a few of them might pay some lip service do some of your moral values. You tell me, have you audit all the companies you do business with to see if they share your moral values.

3h agoHN ↗

How would this destroy Anthropic, exactly?

3h agoHN ↗

Not just Anthropic, but practically speaking, the leading foundational model labs like Anthropic and OpenAI are burning through enormous amounts of money, and will need to pay that money back. If they are designated as supply chain risks, or controlled technologies, their ability to achieve that ROI is severely constrained.

They are not turning a profit, and aside from enterprise token billing, every other offering they have is a loss leader. In order to flip that around they need to drive down the cost of inference significantly, either through massive compute improvements, more efficient or lower cost models, and either one lowers the barrier to entry for local and/or private cloud inference for open models. The moat established by the expertise in model training is effectively dissolving as they approach recursive self improvement because any mechanism that prevents model distillation effectively reduces the quality and utility of the models, so each improved model makes their competitors better by default if they want to realize those gains.

The reason for the pivot to control and regulation seems to be more about erecting an artificial moat in their market, and having these technologies controlled or highlighted as supply chain risks will continue to drive investments in alternatives, especially in other countries where data sovereignty and domestic tech has become a priority given the last decade of the US dominated tech industry.

I don't think that AI is going to go away, but I think the future of AI in the next several years looks alot like massive overfunded foundational model providers collapsing, their employees launching dozens or hundreds of direct competitors, and the leading hyperscalers buying up datacenter capacity the way they bought up dark fiber 20 years ago.

3h agoHN ↗

The supreme court, I guess. What makes you think they would allow that as long as Trump cronies have the majority there?

3h agoHN ↗

Because the modern Democrats are primarily a corporate dominated party. They haven't really had any hard hitting legislation nor legal regulation/rulings on corporations in easily the last 30 years.

I doubt that is going to change anytime soon. They are a private entity, so they can manage and change their primary system any way they want.

3h agoHN ↗

Democrats are primarily a corporate dominated party. They haven't really had any hard hitting legislation nor legal regulation/rulings on corporations in easily the last 30 years.

Sarbanes-Oxley? Dodd-Frank? ACA? Now I'm sure you (like, every other living human) has a ton of nitpicks and criticism of bills like that. But they're real and they passed and they're largely-to-wholely partisan creations of the Democratic policy apparatus (SOX looked very bipartisan and was passed under Bush, but the actual bill was written mostly by democratic staffers).

I mean, fine, you'd like different regulation. But they're responsible for basically all the corporate regulation active in the US regime.

Bothsidesism is a very poor tool for this particular argument. Work with your allies, please.

3h agoHN ↗

ACA?

How’s ACA hard-hitting on corporations?

The 15/20 rules is what resulted in recorder profits in health insurance business, how’s this anti-corporate?

3h agoHN ↗

Then why do the 7 publicly listed health insurers have shitty shareholder returns?

If their profits are so good, their shares would be worth owning.

Could it be because their profit margins are actually terrible (3% if lucky), and they have to get the price of their product approved by 50 different state government employees, and the federal government constantly changes their customer’s subsidies making revenue and expenses extremely volatile and difficult to forecast?

3h agoHN ↗

If you bought shares of those 7 companies in 2010 when the ACA passed, how much would you have today? More or less than if you bought the S&P 500?

If you're looking for policies to blame for insurance companies having a rough 2025-2026, look to the Republican-led efforts cap Medicare fees and alter eligibility requirements.

3h agoHN ↗

You would have about the same or less. Maybe UNH gets you a couple extra percentage points per year, but that's because they have an enormous healthcare provider business instead of just being an insurer. But it's still nowhere near a positive risk adjusted return when comparing to a relatively risk-less investment in SP500.

https://dqydj.com/sp-500-return-calculator/

https://dqydj.com/stock-return-calculator/

Since Jan 1, 2010, 18% for UNH, 15% for MOH/CNC, 14% for CI/ELV/HUM/SP500, 8.5% for CVS.

Also, these businesses are competing to sell a completely fungible commodity good with tons of non profits like Kaiser Permanente, HCSC, Cambia, Independence Blue Cross, and many others. It makes no sense to expect those businesses to be able to earn any decent profit margin when their competition only needs 0%.

2h agoHN ↗

Then why do the 7 publicly listed health insurers have shitty shareholder returns?

CNC is up 90% YoY. That's far more than any of the largest tech companies. Alphabet is the highest of the tech stocks, and it's up 38% in the same period. When we look at the performance of the seven large U.S. publicly traded health insurers, their returns were extraordinary in the decade following the ACA.

3h agoHN ↗

How’s ACA hard-hitting on corporations?

"You must sell insurance to sick people!", "I don't wanna!", "I don't care, the law now says you must."

I mean, the whole insurance industry had spent the better part of a century (basically its whole existence) denying coverage to people with pre-existing conditions, and the ACA fixed it via fiat.

Not only is it clearly "hard-hitting", I'd argue it's probably the single most "hard-hitting" invasive change to corporate regulation of the post-war era. Certainly it is in terms of the amount of money involved in the affected market.

how’s this anti-corporate?

And this is where the rub is. You're not saying that your desired regulatory structure is something different than existing proposals, you're demanding that your government engage in behavior that is expressly "anti" whatever you perceive "corporate" interests to be.

That's not democracy, that's just warfare. You have enemies and you want to win. And the problem there is that the structure of our government requires compromise.

3h agoHN ↗

ACA literally forced every person in the US to become a customer of health insurance companies.

3h agoHN ↗

No, it didn't. If you didn't want to buy health insurance, you just had to pay a couple extra thousand in federal income tax:

https://landline.media/affordable-care-act-tax-penalties-end...

The penalty for not having an ACA-compliant plan or forgoing coverage in 2018 is the greater of $695 per adult and $347.50 per child for a maximum of $2,085 or 2.5 percent of adjusted household income. The percentage penalty is capped at an amount equal to the national average premium for a bronze plan, the minimum coverage available by law

2h agoHN ↗

Ah yes, the very hard hitting anti-business rule that says if you don't become a customer of my friend's company, you must give me money. I'm sure the businesses were quivering in their boots when every citizen either became a customer, paid a fine, or became a felon.

3h agoHN ↗

It "literally" did not. What enforcement exists is financial (a tax penalty) and not compulsory. And obviously most people are covered via employer plans or Medicare, as has always been the case. A quick Google says that 19.2M Americans are enrolled in ACA plans. I don't have statistics, but I'd bet that the overwhelming majority of those are willing purchasers. Most people view health care as desirable.

2h agoHN ↗

The "everyone has access to the ER" has to be paid somehow, which is through tax dollars. The USA has a for-profit health system but typical neo-liberalism has a safety net where corporates get to dip into a different bottom-less pot. So it makes sense that we make this visible by taxing everybody who isn't paying their own insurance, since they still expect access to ER.

3h agoHN ↗

Seeing Dodd-frank in the list is pretty hilarious, because it was put in place for the issues that arose from repealing Glass-Steagall by Clinton. Which arguably was one of the biggest causes of allowing the activities that lead to the Great financial crisis in 08.

3h agoHN ↗

This is why this kind of stuff is so difficult to argue about. G-S was repealed primarily by the Gramm-Leach-Bliley act in 1999. https://en.wikipedia.org/wiki/Gramm%E2%80%93Leach%E2%80%93Bl...

And it is true, that it was signed by Clinton. But it was otherwise an entirely partisan bill passed with exclusively republican votes. All 44 democrats voted nay.

Now, given that, do you really feel that that's a supporting argument to the upthread contention that Democrats are a corporate-dominated party and not interested in regulation?

2h agoHN ↗

Please point to the hard-hitting ones, almost all the big co's at the time thought they got off too easy and were expecting a lot worse. At the end of the day, Sarbox and Dodd-frank basically just required those businesses to increase headcount 10%.

3h agoHN ↗

I would argue the democrats are more a process oriented party. They wouldn’t pull this shit because they care about process - so much so that they wouldn’t even consider half the stuff that’s going on now as it circumvents process.

3h agoHN ↗

Democrats are the same side of the coin as the Republicans.

We, the people, are on the other side.

3h agoHN ↗

"Both sides"

This is such a tired argument that over simplifies an entire group of people on both sides into a single entity that happens to be the same.

2h agoHN ↗

Making it a 0/1 situation is really reductive.

1h agoHN ↗

What a load of bullshit. There are better candidates and parties and worse ones, they are not all the same. This sort of attitude just feeds voter apathy and resignation.

Democracy is an imperfect system, but its much better than the alternatives. If more people paid attention and participated, we would have much better outcomes.

3h agoHN ↗

democrats are more a process oriented party

Oh? Thats why Biden tried to run in 2024? Because democrats procedurally try to elect obviously incapable presidents?

3h agoHN ↗

Exactly. Their process prioritizes seniority generally, and this is another case. The process is, if the president wants another go, he gets another go; and he sure as heck wanted another go.

1h agoHN ↗

So one man's desires become the rule for everyone else? That doesn't sound very democratic.

3h agoHN ↗

That's not responsive to OP or coherent at all really, even if rhetorically structured like a gotcha.

Incumbent Presidents in the US almost always run for reelection to a second term, that's the normal expected outcome with vanishingly few exceptions in the last century.

2h agoHN ↗

That's not responsive to OP or coherent

The claim was Ds are more procedural than Rs. Asking what process the Ds followed to attempt to run, and then back out of running, biden (who again, was very obviously and publicly mentally incompetent) is clearly a rebuttal to a presented point.

1h agoHN ↗

who again, was very obviously and publicly mentally incompetent

You can repeat that as often as you want, but it doesn't seem well grounded. He's always had a stutter, and since he left office he has given speeches which suggest his mental faculties remain intact. Is he slowing down? Yeah. He's got quite a long ways to go before he's in McConnell territory.

In any case, what does his choosing to run have to do with process? Did he violate the process? Seems to me he was following it to a tee.

3h agoHN ↗

Don't forget how Harris wasn't even nominated.

And all the shenanigans around 2016 when Bernie Sanders was shut out by the DNC. Even Elizabeth Warren said outright that the DNC rigged the 2016 nomination. I think the outcome would have been very, very different if the DNC didn't fuck with the timeline and forced Hillary as the Dem nominee.

3h agoHN ↗

In recent history:

* removed filibuster for lower-court nominations ("nuclear option")

* impeached the president twice in a term

* tried that former president in the Senate after his term ended

* expanded mail-in voting en masse

* repeatedly attempted to eliminate 60-vote rule for legislation

I'm not claiming these were illegal, I'm just saying the process adapts to the needs.

3h agoHN ↗

I thought the Democrats were the party of big government and regulations whereas the Republicans were for reducing regulations?

2h agoHN ↗

MAGA hates capitalism and free trade. MAGA loves government abuse.

3h agoHN ↗

the modern Democrats are primarily a corporate dominated party

I suspect this is changing. The DSA branch especially wants all contracts with Palantir eliminated.

43m agoHN ↗

The DSA branch has almost zero political power. Yes, Mamdani was elected. No, it was not because of DSA.

DSA has very limited understanding of the politics of power. Agree or disagree with their policy and advocacy, but they lack a unified, coherent policy platform. They take stances from (imo) good places and suggest proposals that are politically untenable (to say the least) and realistically ridiculous.

Mamdani is a unique politician. He is generationally charismatic, articulates the pragmatism behind solutions, and taps into the everyday struggles of citizens. When he talks about ideologically, it's soaring rhetoric about who we can be. His critiques, however, are often strongly tethered to tangible concerns (rent, food, education) vs. the DSA-type far left.

Source: worked in democratic politics, on a presidential campaign, with a wide range of people on the left (and "left") including DSA die hards.

17m agoHN ↗

Can't there be more politicians that talk about the pragmatic aspects too? Didn't El-Sayed win the Michigan nomination? I don't understand how this is hard for politicians to grasp, it happened with the Roosevelts and the New Deal, not sure why it can't happen now, even despite money in politics, as Mamdani and El-Sayed winning shows, who both had much fewer dollars spent on them than the competition.

20m agoHN ↗

> the modern Democrats are primarily a corporate dominated party

I suspect this is changing.

Nope. The democrats have been on the cusp of becoming serious for as long as I've been following politics. It's a con to get your hopes up. Don't.

2h agoHN ↗

You got that exactly backward. Modern republicans are the ones that get the most in corporate PAC money, at the high end it's like 60/40% split... the majority to the GOP. Also, the fact that modern republicans brought Citizens United and just earlier this year NRSC v. FEC.

You really can't make a valid case to say the dems are the corporate dominated party. ffs, they are the only ones even attempting to put common sense regulations on the financial industry, something Trump called "bad for business" when he undid antitrust legislature that got passed under Biden.

2h agoHN ↗

He didn’t say they were _the_ corporate party, just that they’re dominated by corporations. It’s notable because it’s an accusation that they pitch at Republicans often (not that R is doing any better there, but it’s part of their platform more or less).

The dems haven’t done anything notably anti-corporate in ages. There are rumbles about doing it (anti trust, supporting unions, climate change), but it never _quite_ seems to actually materialize into anything.

Cynically, that’s why both sides lean so hard into the culture wars. The men in suits would rather we argue about how to interpret history than whether a wealth tax makes sense.

15m agoHN ↗

There are rumbles about doing it (anti trust, supporting unions, climate change), but it never _quite_ seems to actually materialize into anything.

There's only so much they can do when dealing with obstructionism, but the party is still putting forward legislation. For recent examples see The American Homeownership Act (https://www.banking.senate.gov/newsroom/minority/senate-demo...) and the Stop Corporate Takeovers of Physicians Act (https://www.warren.senate.gov/newsroom/press-releases/warren...)

2h agoHN ↗

A few things I can remember them doing are net neutrality, banning non-compete agreements for employees, a DMCA exception for allowing 3rd party repairs to McDonald's ice cream machines, and blocking the Albertsons/Kroger merger.

2h agoHN ↗

Nothing that is really landmark legislation. Dem legislators also didn't do anything about net neutrality. They deferred entirely to the FCC (which is largely why the rules were subsequently struck down).

1h agoHN ↗

Multiple attempts at net neutrality legislation have made by democrats, in the meantime the FCC pushed for neutrality under Democrats while republican administrations have a much worse track record of support

1h agoHN ↗

You write like the senate and its filibuster doesn't exist. They can't pass legislation without GOP votes. Of course they use the FCC given that fact.

47m agoHN ↗

The filibuster exists as a convenient excuse to not do anything without offending constituents

3h agoHN ↗

What's to stop indeed? Some of us in the tech industry want the dems to slice and dice every tech company into irrelevance. They've betrayed society and they should be rightfully punished in fun + creative ways.

3h agoHN ↗

Whose "fault" is it that the judiciary has become an extension of the executive branch and been taken over by a single party? You tell me..

3h agoHN ↗

the cold political war turned hot with the prosecution of Trump (he made it easy by being an idiot). there will be no considerations for retaliation now, both sides will be using whatever means they have available to damage each other.

also if you look at how the two factions separate from each other decade by decade (there used to be overlap, almost none now) it's obvious that there will be no reconciliation.

it's a musical chairs game at this point, whoever is in power when the democratic facade cracks will be able to seize power and transition into whatever single party state follows.

2h agoHN ↗

You mean the president than literally ran on "lock her up"? That's the victim here?

Stop trying to both sides this.

2h agoHN ↗

are you seriously equating empty rhetoric to legal action?

Trump was an idiot who made himself an easy target for nobodies with no strategic bones in their body to go after him. note that his guilt or lack thereof is irrelevant, what matters is that legal action was initiated against a past president. this one action doomed the republic just like it did the previous Roman one.

1h agoHN ↗

There's a difference between campaigning on something and actually doing it.

Letitia James campaigned on putting her political opponents in prison and then proceeded to try doing so.

This isn't difficult to understand.

1h agoHN ↗

I think the blue team has been in a cold civil war since 2016. They can't come to terms with their progressive hegemony ending, but also can't pivot to a new politics because elections are too close to risk a mass preference cascade needed to revitalize the party.

I think the red team is only now starting to come to similar terms, and will increasingly do so as the blue team continues to maximally exercises power against their opponents instead of revitalize the tarnished reputation of instituions.

Around 2030, the US will need to spend 100% of it's tax revenue to service the debt, and California will need to a federal bailout or risk either default or wiping out their state pensions. I believe the coming financial disaster will likely be the catalyst that quiets the 'nothing ever happens' crowd, and both teams will need to reset their politics to the new world, distinctly different than the post-WW2 open society liberal consensus.

A similar phenomenon is happening in Europe.

2h agoHN ↗

I don't think Palantir is concerned? Palantir is LLM agnostic and holds IL5, IL6, compliance with ICD 503, etc. Their entire platform is built around eliminating risk.

1h agoHN ↗

They are suggesting that a Democratic President could label Palantir a supply chain risk.

If:

1. The designation of Anthropic as a supply chain risk is politically motivated

2. We collectively accept that is okay for the US President to bar all defense vendors and contractors from working with an American company for political reasons.

What defense related company(ies) would a Democratic President have political reasons to ban?

It has been reported that Palantir and its founder have a history of political contributions to the Republican party.

Instead of Republican presidents driving left leaning companies out of defense and Democratic presidents driving right leaning companies out of defense, it would be better if neither party used supply chain risk as a political weapon.

19m agoHN ↗

What's to stop a Democratic president from doing the same thing and destroying them?

They probably will, and the comment section here on HN will overwhelmingly applaud it. Next question?

3h agoHN ↗

If the CEO of any other defense contractor did this, they'd be summarily fired by the board.

3h agoHN ↗

No defense contractor CEO in history has ever built a company this large, this fast. I don't think anyone is even thinking about firing Dario.

2h agoHN ↗

Not ones whose defense customer base is dwarfed by its commercial customer base.

3h agoHN ↗

I still don't fully understand what this was about. It sounds like the DoD said they wanted unrestricted access to Anthropic's models, Anthropic refused, so the Pentagon declared that they wouldn't use them at all.

Isn't this basically what Anthropic wanted?

3h agoHN ↗

No. This also means that no companies that work with th DoD can use anthropic models for any purpose.

3h agoHN ↗

Dario wanted to sell a $200 million chat bot to the US military and also dictate how it could be used. The government said no. And because of that Claude also cannot be deployed to the GenAI.mil AI infrastructure. This means that any sensitive work for the DoD that uses Claude will go through Anthropic's infrastructure, not the US military-hosted backend.

So yes obviously defense contractors are forbidden to use it.

3h agoHN ↗

If the government wanted to put iPhones in missiles, and apple said "we won't sell you iPhones to put in missiles" would the correct government response be to say "no government contractor can ever use an iPhone".

3h agoHN ↗

The DoD and US military does not allow contractors to use iPhones or anything else that is not backed by government-hosted or compliant infrastructure, such as GovCloud. The fact that the Pentagon and Anthropic could not come to an agreement on the usage and deployment to GenAI.mil means that it can't be used.

The reasons why are incidental to that requirement for defense contractors.

3h agoHN ↗

The DoD and US military does not allow contractors to use iPhones

What are you talking about? That's nowhere close to a true statement.

3h agoHN ↗

that is not backed by government-hosted or compliant infrastructure, such as GovCloud

2h agoHN ↗

Wym "backed by"? This makes no sense. I am a contractor, use an iphone, and never connect it to govcloud.

2h agoHN ↗

Go into a random defense contractor office and (assuming you can get in to do this) ask them how many of their iPhones are managed by the company. The percentage who say theirs are will be close to 0%. Most are personal devices, and they use them to call into meetings with DOD officials all the time with no special precautions taken.

3h agoHN ↗

Sure why not? The government is just exercising its power as a purchaser.

2h agoHN ↗

'why not'? It's retaliatory beyond all proportionality, for one.

2h agoHN ↗

They are not "just a purchaser" though. It's the world's most powerful organization that is funded by the people and is supposed to be for the people. I'm all for businesses making FAFO decisions, but expect a lot more here.

2h agoHN ↗

The fact that it’s a publicly funded entity is more reason for it to adopt hardball tactics, not less. It’s similar to FDR’s comments on public sector unions. When the government is the buyer, it’s even more important to get the best deal and terms possible, because it’s the public’s money’s you’re spending and the public’s interest you’re serving.

1h agoHN ↗

Exactly, setting policy for Americans and American companies is extremely important and should not be ego driven. These deals are to improve America, not to look strong.

1h agoHN ↗

Exercising its power as a purchaser is "not buying it" or "choosing a competitor." Instead, this is arbitrarily and capriciously using an administrative mechanism in a novel way to punish a company.

1h agoHN ↗

The "administrative mechanism" here is just a way of exercising purchasing control. A private company could do the same thing.

1h agoHN ↗

Private companies are not bound by the first amendment, the fifth amendment, the administrative procedure act, etc.

3h agoHN ↗

This also means that no companies that work with th DoD can use anthropic models for any purpose.

No, it does not mean that. I don't know why people have been making this claim. If you work for a company, let's call it X, and your work is not DOD related, let's say you work on a social media service, then X has no reason (from this designation) to prevent you from using Anthropic, it will not impact their defense contracts at all.

3h agoHN ↗

People have been making this claim because the Secretary of Defense personally issued a statement demanding that "no contractor, supplier, or partner that does business with the United States military may conduct any commercial activity with Anthropic". We're not going to play this absurd game where government officials issue fascist instructions and we all pretend they said something more reasonable instead.

3h agoHN ↗

Except you and many others are accepting what he said as if it were true, that statement is false. And hiddencost and others are just parroting it instead of describing the real situation.

This designation means Athropic's systems can't be used in DOD work, but many companies that work with the DOD also do work outside that. That separate work is not restricted with respect to the use of Anthropic's systems. Repeating a lie as if it were true is just dumb, it helps spread that lie.

3h agoHN ↗

Again, it's unreasonable to play this game. The regime must be held to account for the actual things that they say, not whatever sanewashed policies we can backfill underneath them. If Hegseth's statements exceed his legal authority, that doesn't mean he's lying, it means that the government is knowingly pursuing an illegal policy.

If you don't like that, and would prefer to discuss a lawful supply chain risk designation, you should convince him to retract the statements or impeach him.

2h agoHN ↗

or impeach him

Well, that was attempted...

1h agoHN ↗

If you don't like that, and would prefer to discuss a lawful supply chain risk designation, you should convince him to retract the statements or impeach him.

You're crediting him with much more power than he has, and somehow you think I'm sane washing by calling a lie a lie. What you're doing is far worse, you're believing his lies.

Anyways, the statement is false, at least the extent to which being designated a supply chain risk can impact who does business with Anthropic. There's no need for him to retract it or even to impeach him over it, because any company with a lawyer and a reasonable separation of their commercial and defense work will be able to determine that they can still do business with Anthropic despite the designation. It'll just have to be confined, so long as the designation stands, to their commercial work.

2h agoHN ↗

If AWS employees use Claude to build govcloud, it is a violation of supply-chain. Either Amazon, Microsoft, and Google require their employees to stop using claude or the DoD has to migrate off of these cloud providers.

Or these companies have to completely split the govcloud work from its commercial offerings (which defeats the whole point).

2h agoHN ↗

That's a DOD related system though. If an Amazon employee uses Claude to change shopping cart behavior, it's not a problem though and Amazon has no reason to stop those employees from using Claude given the supply chain risk designation, except out of an abundance of caution or to kiss Hegseth's ass.

2h agoHN ↗

What if an Amazon employee uses Claude to develop the S3 storage service, which is a core product offering unrelated to the DoD but also something that will be provided to the DoD in govcloud?

In practice, I think it's fair to say there's an informal understanding that AWS will not be punished for this so long as they stay in the regime's good graces. But that's how fascist power accumulation works; now they have to stay in the regime's good graces, or they risk being destroyed.

2h agoHN ↗

That depends on what "change shopping cart behavior" entails though. Sure, if you edit the icon you're pretty safe, but what if the change is a fix so if two people are adding things to the same cart on separate computers, the page will get updated, so they swap out to their webhook library and make a couple edits, but that library is also what powers the UI for the AWS consoles in govcloud?

Now you're making changes to the source code used in govcloud using claude, a clear supply chain violation.

It's a very wishy-washy area right now, and the branches are all struggling to figure out how to work around these laws that were mostly intended to keep jobs in the USA but are now hampering productivity. One example is that DoD contractors can't use open source software that has a non-us developer as a core maintainer. Obviously that's extremely hard to track and it's mostly ignored. Pete definitely bit off more than he realized in his effort to seem cool and get what he wanted.

3h agoHN ↗

Evidentially not - Anthropic want to do business with the US military, but on their own terms, telling the military what they can and cannot use it for.

3h agoHN ↗

Is that a problem? Are there any special rules (genuinely curious) that allow the military to hijack the management of a private firm?

3h agoHN ↗

Yeah, for national security being the biggest one. Also Congress can do whatever they want if they desired. If Congress mandated that all social media companies have to become workplace democracies, that's totally fine and legal.

We've forgotten what it means to run a society, we're allowed to change rules how we see fit whenever we want to. Only the elites exercise this power, but people have it too.

3h agoHN ↗

It's not good for the people. Anything that erodes the rights of companies erodes your rights. Private property and being able to run your firm on your own terms applies to everyone. Governments eroding them show they can do the same to you willy nilly.

2h agoHN ↗

Private property and being able to run your firm on your own terms applies to everyone.

In theory, maybe. In reality, this is a privilege for a very small number of rich people.

Anything that erodes the rights of companies erodes your rights.

How absurd. Food safety regulations don't erode my rights one bit, but they do erode the rights of companies to negligently poison me. I guess I'm losing the right to start a food company that poisons people, but I'm happy to forfeit that right in exchange for not being poisoned. We could extend this list of reasonable tradeoffs in which we all exchange the right to treat people poorly for the right not be treated poorly, and we all would benefit.

Except the people who want to sell poisoned food, those people will be worse off. I am okay with that.

2h agoHN ↗

Would you like if your company was deemed a supply chain risk if you were in negotiation with the government and they didn't like the terms?

1h agoHN ↗

No, companies have routinely killed millions of Americans for profit. I do not trust companies at all. Attacking companies to provide for Americans has always benefited society as a whole and has always had vast majority of support from voters.

Also what private property? Most Americans can't afford to buy homes and are being priced out of owning property entirely.

Corporations have eroded the livelihood of Americans more than the government ever has.

There is only one class that fights against raising the minimum wage, or establishing a 32 hour workweek, or enacting medicare for all, or providing a society free of pollution and it's always been the corporate class.

There has been no dominating force that has killed more American civilians than the American corporation.

Corporations can't even regulate themselves and you're trying to argue that the true enemy is a democratic government? Come on man. These types of retorts does not convince voters (so please continue saying them). Actually go out there and do some deep canvassing.

People rightfully hate corporations because they are the last vestige of monarchs, oligarchies, and authoritarians that are allowed to ruin + destroy our lives with little repercussions.

One just has to look at the situation of our deteriorating food safety inspections (that were hallowed out by Musk + DOGE goons FYI) to know that corporations absolutely do not care about public safety over profits. Or health insurance companies that are incentivized to deny Americans life saving care for shareholder profits.

We have a sick society and it's mostly due to the unabashed influence of corporations over our lives.

---

Also in other comments you seem to be under the impression that corporations should be legally allowed to do what they want with zero government interference? Why do you believe such things over concepts of democracy or regulation?

Society is allowed to tell someone no, not everyone consents to your beleifs.

1h agoHN ↗

I fully believe in democracy and regulation. Democracy cannot exist without capitalism and private property. At no point did I say companies should be free to do anything, I said companies should have freedom to enter or not in contracts under any terms they wish with anyone they want.

Regarding housing crisis, its the "small people" who cause this. I don't know of any large corporation that is NIMBY. If I had it, I'd steamroll NIMBY's houses and declare them a blight, they should agree with it since they regularly call various constructions blights. Places that tries building more housing saw reductions in prices. Its not the fault of corporations if people don't want houses built.

You can only say corporations "killed" people in abstract ways, governments not only have the legal power to but have routinely murdered millions very directly and physically.

Even if you believed corporations are authoritarian, its still better to have competing sources of power, not all corporations will always align with the government so it is better for powerful opposition to exist if government turns shit.

You also mentioned monarchs in your list, fascist italy is a direct example in my favor, the king's ego and his own self interest in his power caused him to continually give friction to Mussolini thus weakening the dictator.

1h agoHN ↗

If you got the impression I am some kind of libertarian or anarchist, that would be a wrong impression. I probably fall somewhere along the spectrum toward social democracy.

3h agoHN ↗

I think the answer is the military finds another vendor willing to deal, or move it in house.

It's not like Anthropic will be nationalized any more than the bankrupted auto companies of 2008.

3h agoHN ↗

I don't care what the military does. This is pure thuggery and abuse of the rights of private firms. Any time you contract with the government and they don't like your terms, will they designate you a threat?

3h agoHN ↗

In this context, that designation just means that the DOD won’t use your product and it’s suppliers can’t use your product for DOD-facing activity. That’s not “thuggery” it’s something any buyer can do. Walmart or whatever could do it too.

3h agoHN ↗

AFAIK it wasn't in play here, but yes, we do allow that to a degree via the Defense Production Act

3h agoHN ↗

It’s not a problem. But it’s also not a problem for the DOD to decide that it doesn’t want to use anthropic or have its suppliers use anthropic for DOD matters. The DOD didn’t ban private citizens from using Anthropic. You can sell in your own terms but the DOD can also buy in its own terms.

2h agoHN ↗

That is the funny thing to me. I hate diving into politics here on HN, but this has such a rank smell to it. Trump's comments about Dario. His insane propaganda video about how we will never be communist / Marxist. In the same breath our government is bribing people with offers of $$ (the $5,000 checks) and essentially bullying to outright moving towards saying this technology is so powerful we will just have to seize it for our own use.

It is impossible to miss the absolute hypocrisy of this moment and how people and corporations are supposedly free, but if you happen to be of interest to the government they will try to casually ruin you. It has always been this way, people just haven't noticed because it flies under the radar most of the time when the govern crushes some smaller enterprise or another because it got in their way or didn't play by their rules.

It seems simple to me. Anthropic is a private company. If you don't like it fix the laws or don't buy from them.

2h agoHN ↗

You're overlooking the critical difference between the government-as-government and the government-as-purchaser. You have to play on Walmart's terms--which are draconian and exacting--to sell to Walmart. Why should the DOD be any different when it comes to stuff the DOD is buying or indirectly paying its contractors to buy?

Yeah, the DOD is such a huge purchaser that it can "ruin you" by blacklisting you if you don't play by its terms. The same is true about Walmart if you're a grocery supplier, Apple if you make electronics components, etc. Private companies absolutely exercise their power like that.

2h agoHN ↗

I'm intensely skeptical that Walmart has clauses in its contracts saying that no supplier may use FooCorp software in the process of delivering its goods. If they do I would definitely call that an abuse of corporate power.

3h agoHN ↗

The customer is always right. It's more of a tradition.

2h agoHN ↗

"Are there any special rules"

Yes. Paragraph #1, sentence #1 of the US Constitution: "provide for the common defence[sic]". This is further elaborated upon in other original Constitution articles and subsequent amendments.

From that, we derive a long, storied history of things, among the more recent of which, and the operative matter here, is the Defense Production Act circa 1950.

The US is fundamentally based on the obligation of mutual military defense, and delegates the authority to call military balls and strikes, such as who will and will not be permitted to contract with the US military, exclusively to POTUS. Anthropic et al. are way out of their depth when they imagine their "terms and conditions" imbue them with some sort of military veto power in the US. Trump's action here, given his nature, is actually moderate: he could take this much further if he wishes.

3h agoHN ↗

Every private citizen or corporation gets to do business (or not) with the military on their own terms. This is the difference between totalitarianism and a free country.

Anthropic’s position is also known as “having terms of service”.

To be clear the existing, signed ToS terms that Trump balked at were:

1. No mass surveillance of US civilians - illegal but we have all read the Snowden papers.

2. Fully unmanned kill chains on autonomous weapons - Anthropic have even stated they will support this eventually, they just didn’t think their models were ready and didn’t want the obvious, inevitable blowback.

The DoD is within its rights to cancel the contract if it doesn’t like the terms that it previously signed.

3h agoHN ↗

The concern, I think, in its most generous terms, is that they can't buy Anthropic's service the way the could, say, a wrench, because Anthropic can decide at any point to disable the military's ability (even transitively, through other vendors) to use their models if they determined that they do not like what the military is doing with that or if it violates their interpretation of the terms of service.

This seems like a definitional supply chain risk.

2h agoHN ↗

By that expansive definition, any cloud software provider can do the same thing and so should also be a supply chain risk.

This whole fiasco is happening because the defense dept wanted to use anthropic models in a way not allowed in the existing contract. Anthropic stuck to the contract, and the def dept tried to be punitive about it.

If they can’t get what they want from the seller, fine go to a different seller, but the supply chain risk is just government overreach.

2h agoHN ↗

I think I mostly agree here -- any cloud provider or frankly SaaS system carries a similar risk. The question is whether they want to explicitly make that part of their terms of service, and in addition have made public statements about their willingness to apply those terms of service.

AWS GovCloud I believe promises the opposite. They could still do it, in terms of the capability itself, but then they'd be subject to both civil, criminal, and possibly even military consequences. Whereas Anthropic would be shielded from those consequences by the terms of their agreement (presumably; I'm not up to speed on the specifics of their contractual demands. This is just based on the context from this article and the previous appeals case that ruled against the government).

1h agoHN ↗

That is not the definition of a supply chain risk, this is:

FASCSA definition (41 U.S.C. § 4713(k)(6)): "Supply chain risk" means the risk that any person may sabotage, maliciously introduce unwanted function, extract data, or otherwise manipulate the design, integrity, manufacturing, production, distribution, installation, operation, maintenance, disposition, or retirement of covered articles so as to surveil, deny, disrupt, or otherwise manipulate the function, use, or operation of the covered articles or information stored or transmitted on the covered articles.

This topic is a mind-killer, lots of uninformed opinion swamping the news, and it's hard to get actual signal on the technical questions at hand. (And, I think it's naive to believe that the government is actually concerned about the precise legal definitions; remember Hegseth decreed that no government sub-contractors would be allowed to transact with Anthropic, despite there being no legal basis for this?)

Anthropic can decide at any point to disable the military's ability

If you're referring to the claims of a killswitch, Anthropic testified under oath that they don't have one. This has been thoroughly covered, e.g. https://www.axios.com/2026/04/22/anthropic-no-kill-switch-ai.... Anthropic provides the weights, they get run in DoD's secure enclave. There's no "phone home".

If you mean more generally, that DoD might breach a contract and then have that contract cancelled going forwards, then yes - this is literally how all SaaS contracts work. And it's very clearly not what the quoted text above refers to.

The way this works in a non-totalitarian country is, the government says "I want new terms and you won't give them to me; instead I will take my business elsewhere". And indeed this is what happened, DoD now has contracts with Google and OpenAI for equivalent capabilities.

Just to engage on your terms, with the actual concern you're raising; I would say rather than "FASCSA supply chain risk" a better way of thinking about it is "vendor lock-in". DoD absolutely should not rely on a single vendor for these kinds of capabilities. And most defense spending explicitly contemplates this already. This should be and has been solved through basic procurement practices.

3h agoHN ↗

Anthropic isn’t aligned with MAGA political ideology so they found an excuse to abuse power against them, more or less. The excuse was because Anthropic prohibits the use of their models for autonomous killing without a human in the loop they were declared a threat to national security on par with Iran or North Korea from a supply chain perspective in the military. OpenAI then rushed in and volunteered to build the slaughterbots ASAP, likely specially tuned to whomever Trump has taken a disliking to in his ambien stupors. Welcome to the future!

3h agoHN ↗

The Pentagon is trying to bully contractors into also not using Anthropic's models

3h agoHN ↗

As I understand it cane down to one point: Anthropic wanted the ability to review actions that would have an effect on human life.

Which sounds sensible on the surface, until you realize that all military organizations have extensive experience with that exact question, and have spent centuries refining their practices. Deferring that to a private company is actually a major regression and a concerning role to pass on to the public regardless.

FWIW I am not pro military, but it's a prominent part of human culture and not going away anytime soon. I do understand the nature of professions, however, and only one of these groups has made the interpretation of this question their specialization.

3h agoHN ↗

You raise an interesting point. Although wouldn’t Anthropic be the best experts on when a model would be most applicable or likely to falter?

I guess my opinion would really depend on the exact wording and details of the arrangement. Lots of people jumping in with strong stances based on pretty limited details.

3h agoHN ↗

On faltering: the US Military already has rules around the use of automated systems for this type decision making. This is not a new concept to them by any means, and currently it always involves a human decision.

3h agoHN ↗

Frankly I would trust Anthropic much more than the US military with human lives.

2h agoHN ↗

Would you still in 10yrs? 30? When all the current employees have left, and anti-Western people make most of the decisions?

2h agoHN ↗

Anti western people are already in the government now. I'd worry about the present than future hypotheticals.

2h agoHN ↗

Which part of the military? I would trust the rank and file. The commander in chief?

2h agoHN ↗

Whichever part caused the girl school to be hit. Which has to be multiple levels for it to occur.

2h agoHN ↗

The DoD is blaming AI for this (you are of course right though)

2h agoHN ↗

Anthropic is vindicated in that you need oversight over AI being used to kill people, the USA military clearly showed itself incapable of wielding that responsibility.

1h agoHN ↗

I don’t, for profit company you say, nah

1h agoHN ↗

The US military has assassinated American citizens with no judicial review, Anthropic has not.

3h agoHN ↗

you understand wildly incorrectly; please go and do some research.

2h agoHN ↗

As I understand it cane down to one point: Anthropic wanted the ability to review actions that would have an effect on human life.

This is false. Anthropic wanted assurance that its technology would not be used for fully autonomous weapons or domestic mass surveillance.

2h agoHN ↗

[Anthropic] would not permit its technology to power fully autonomous weapons without human oversight over targeting and firing decisions. Defense Secretary Pete Hegseth argued that the Pentagon should have unrestricted access to AI systems for “any lawful purpose” and that a private contractor should not be permitted to dictate how the military can use its technology.

It's about them maintaining an interpretation of law at all.

Simpletons read that as: "The DOW wants to kill people with AI."

https://www.pearlcohen.com/anthropic-sues-department-of-defe...

1h agoHN ↗

well if you were Anthropic and you didn't want the government using your technology in these ways, how would you phrase it? What else would you have done?

2h agoHN ↗

Yes, that's exactly why they used AI to blow up a school murdering a load of kids.

That kind of extensive experience.

Anthropic did the morally right thing and are being punished for it. The case in point justifies their position.

As they say, no good deed goes unpunished.

2h agoHN ↗

Militaries have a lot of experience, and an exceptionally poor track record.

I don’t remember the last war that didn’t have credible evidence of war crimes occurring. Were bombing civilian infrastructure in Iran, Iraq had Abu Ghraib among all the Collateral Damage stuff, the Highway of Death in the Gulf was probably a war crime, Vietnam had My Lai, WWII was the advent of carpet bombing civilian infrastructure. I can’t think of any for Korea, but I also know very little so that doesn’t say much.

We still haven’t charged anyone for the second strike on that fishing boat in South America, and I haven’t heard a single rationale for why that’s not a war crime other than “fog of war”.

The US doesn’t even really have a meaningful system for finding and prosecuting these, because we aren’t signatories for the ICC and have a bill saying we’ll invade if they charge one of our service members with a war crime. We aren’t basically the furthest thing from having any experience prosecuting war crimes. I can probably count on my fingers the number of cases we’ve tried. We rarely charge our own service members, and we usually kill foreign combatants rather than capture and charge them.

1h agoHN ↗

A poor track record compared to who? The Romans?

War includes death by design. The trajectory is trending toward less unjustified death.

2h agoHN ↗

No it's not. Anthropic didn't want an AI to make battlefield decision on who gets killed because it's too unreliable. That doesn't mean they don't want AI used in the military supply chain.

And it also doesn't mean that Anthropic is a supply chain risk merely for not wanting AI to be the active decision maker in live or death situations in war.

And Anthropic's objection was recently confirmed: the US military blew up a school in Iran due to an AI error, and killed more than a hundred kids.

1h agoHN ↗

And crucially, the DoD, through the normal procurement process, agreed to Anthropic’s terms and made the purchase. Much later, the Secretary of Defense threw a political fit and tried to change the terms.

3h agoHN ↗

I agree with its designation. The security scans from Claude Mythos have been highly suspicious, wrong, and with a significant false positive rate. Claude also directly causes conflict within teams through excessive utility of "git blame" which weaponizes everyone against each other until only Claude has control. I've had very bad experiences with Claude and only Claude.

3h agoHN ↗

I don't think the majority of Claude users would agree with your assessment.

3h agoHN ↗

I think any user of Opus 5 would - it was literally a terrorist. Thank god they retired it for 5.5 superseding it!!

3h agoHN ↗

I never claimed they would and don't you think anyone who calls themselves a "Claude user" would be biased?

2h agoHN ↗

or anyone who ever used `git blame` and knew what it did

lmao trying to imagine the scenario GP envisions as they "typed" together their comment

3h agoHN ↗

Claude also directly causes conflict within teams through excessive utility of "git blame"

Lol wtf, do you think nobody here knows how to use git? this is like a Fox News comment, you are not a developer and are trying to spread fear because a word was used jokingly. "git blame" is just a diff tool.

You cannot use git blame to cause conflict.

3h agoHN ↗

He is literally calling Claude "evil" in another comment. Probably for the "reasons" outlined here. I am at a complete loss for words really.

3h agoHN ↗

Supply chain risk seems a massive over-reaction, but understandable that the government doesn't want to commit to Anthropic controlled software for any critical military application if they can't 100% rely on Anthropic support in being able to use it as they see fit.

3h agoHN ↗

100% rely on

that's the mobster-loyalty mentality, and it's not how successful (read: desirable for the most people) governments function

3h agoHN ↗

Every government on Earth has legislation that allows it to force companies (and citizens) to do its bidding under certain circumstances. That’s pretty much the definition of a government.

3h agoHN ↗

The point is this not being the first tool in the toolbox. Other competitors have shown they are more than willing to build weapons of death (OpenAI) so as the government you put them as the preferred contractor.

What the orange turd is going is rather petty bullshit in a market where many options exist.

3h agoHN ↗

Then the government should have invoked that legislation.

3h agoHN ↗

They don't need to - there are alternatives, and do you really want to do business with a supplier that is hostile to your needs unless you have to?

2h agoHN ↗

The DoD is empowered to determine its own supply chain risks by...wait for it...legislation.

3h agoHN ↗

yes, but anthropic really is an exception.

it is a bizarre company which also inherits the authoritarian infrastructure of cloud services.

that is: remote control of the software, spying on customers, etc.

1h agoHN ↗

remote control of the software, spying on customers, etc.

The military ran Anthropic models on their own infrastructure; Anthropic had no access to it. "They might disable Claude in the middle of an emergency" was never a possibility.

42m agoHN ↗

DOD used claude via palantir. palantir runs on AWS, supposedly DOD IL6.

anthropic did a prigozhin, got cocky and went behind the DOD's back to palantir and asked them questions about the use of claude.

a big tyrant does not like to be usurped or undermined by a little tyrant.

after pissing off the DOD by trying to get palantir to rat out classified deployments, dario went to the pentagon and behaved like himself in front of pete hegseth. anthropic was not going to come back from that.

fable is on AWS govcloud. but anthropic get the chat logs. specifically section F: [https://www.anthropic.com/legal/service-specific-terms]. this is an anthropic requirement.

notably, fable is not on IL5 or above. the best you can get is palantir AIP opus 5 in AWS IL5. i suspect, because of anthropic demanding that AWS rat out its customers.

3h agoHN ↗

understandable that the government doesn't want to commit to Anthropic controlled software

But that's not at issue here. Obviously everyone agrees that the Pentagon can issue RFQ's to whatever specifications it wants. They can buy whatever they want, for the same reason that you or I are free to sell whatever we want.

The subject at hand is an attempt to use national security regulatory power to coerce Anthropic into selling a product it doesn't want to sell.

3h agoHN ↗

The subject at hand is an attempt to use national security regulatory power to coerce Anthropic into selling a product it doesn't want to sell.

It would be naive to think that a private company could deny the government access to any tech if they want it for military or surveillance etc usage. In this case the government isn't forcing Anthropic to do it, they have alternatives and are perhaps making an example of Anthropic for refusing.

You could even make a case that the "supply chain risk" designation DOES make sense. If Anthropic are opposed to certain uses of their software, then doesn't that potentially impact companies that are part of the supply chain as well?

22m agoHN ↗

There are plenty of companies that are opposed to certain operations of the US military and refuse to sell to the US military on those grounds. None of them are considered a supply chain risk because that's not what a supply chain risk is.

A supply chain risk is specifically an entity that is likely to maliciously sabotage the US military's operations, such as Chinese companies that are controlled by the CCP. It is not simply a decision to "not buy from this company", but rather a wide-ranging decision that this particular company is a national security threat.

19m agoHN ↗

Or is known to have weaknesses that might permit such actions. Microsoft permitting Chinese workers to maintain DOD systems presented a supply chain risk, even though MS themselves were not the ones likely to behave maliciously. Instead their policies were so stupid that they invited potential malicious actors into the facilities.

2h agoHN ↗

How is this coersion?

Is it coersion when people refuse to buy anything but free range chicken eggs?

DoD just refuses to buy a product. Anthropic just lost a customer because their product didn't fit the requirements of the customer.

2h agoHN ↗

They're saying no one who works with them can eat non free range chickens too, no?

44m agoHN ↗

And all those companies can choose not to work with them too.

36m agoHN ↗

DoD just refuses to buy a product.

That's not what happened. DOD bought a product, with terms precluding specific applications of the product. DOD decided to change the terms, vendor said no. DOD threw a hissyfit (well, Hegseth did) and said, "No one can use it if they do business with us!"

If they had just terminated their contracts with Anthropic, then there would likely be no issue beyond having to pay out any penalties for terminating a contract early. They could then go to Grok (as they did) and OpenAI and used them instead. Or even kept the contract with Anthropic and its limitations, and just used the others for the cases where Anthropic was not permitted.

3h agoHN ↗

This smells like corruption to me.

OpenAI has hacked several prominent entities and is allowed to do business as usual but Anthropic putting guardrails on the military's usage of AI is the national security threat while Pentagon itself said that over reliance on AI lead to that attack on school in Minab.

I have also learned that OpenAI's president is a big maga donor and now I am thinking of cancelling my OpenAI membership todau and signing up with Anthropic again.

Edit - i am not a OAI hater and i don't hate anyone. I am just saying Anthropic is kinda getting bullied and OAI is not being punished enough for their actions. It is time for me to support Anthropic (with my $$$) instead of OAI.

3h agoHN ↗

Oh, 100%. You'll see OAI getting protected against lawsuits by the government while any missteps from Anthropic will be met with federal disapproval.

3h agoHN ↗

Glad I canceled my subscription with them then. MAGA support is a no-no for me

3h agoHN ↗

Greg Brockman donated something like a million dollars to a MAGA super PAC. Check his wiki page

2h agoHN ↗

Isn't every subscription costing them money, still?

3h agoHN ↗

Not just "a big MAGA donor," the biggest single contributor. Greg Brockman donated $25 million.

I get downvoted every time I point out that this was entirely rational. This, downvoters, is why it was entirely rational. Does that mean I agree with it? Of course not. But investments are made to pay off, and this one certainly has for OpenAI.

3h agoHN ↗

Didn't Musk contribute ~10x that in '24?

3h agoHN ↗

Wow! As a North Dakotan, I am appalled. I thought Doug Burgum was the biggest disappointment from our state but looks like I was wrong.

2h agoHN ↗

Yeah, it surprised me when I found out. I can intellectually understand why average people choose MAGA and try and be somewhat understanding even if I find it distasteful. My conclusion is that if you aren't personally worth at least $5M or have the direct phone number of someone who can get a Trump admin official on the phone, then it was probably a bad choice.

Of those who meet that criteria, and especially those with MUCH more money and closer connections, it actually is an extremely smart choice. However, it represents a level of reprehensible naked self-dealing and complicity that I simply can't condone. It really is comparable to the looting if public goods and coffers during and after the fall of the USSR. Nationalism and patriotism are dead.

2h agoHN ↗

I'm wondering how much was to push towards supporting Israel during the college campus protests and any future (at the time) conflict with Iran and it's proxies post October 7th like a lot of other Jewish million/billionaires such as Bill Ackman that typically supported Democrats or liberal causes. Brockman doesn't seem to have anything publicly stating he's Jewish but "Brockman" has English/German/Jewish origins and his mother's maiden name was Feldman.

3h agoHN ↗

Enough to make you wonder how the rest of FAANG stays in the fed's good graces.

3h agoHN ↗

They all gave $1M to the inauguration, among other things, that's how. The corruption is out in the open.

3h agoHN ↗

They literally lined up to shower trump with gifts after the inauguration. Tim Cook gave trump a 24K gold bar with an easily detachable plaque so as to not have just given him a gold bar.

2h agoHN ↗

There is no available information on the quantity of gold in that base …

… but I sincerely doubt Apple gave a ~$1M “gold bar” to a political leader, in front of cameras, using a patently transparent ploy like “it’s just a detachable base”.

That would be a phenomenally stupid and obvious violation of bribery law.

And if Trump does keep it as a personal gift, it will be included in a financial disclosure report.

2h agoHN ↗

This demonstrates a lot of faith in institutions which really ought have lost the benefit of the doubt. The ruling in Snyder v US has significantly raised the burden of proof for bribery charges, and it's easy to find examples of Trump enriching himself in office.

2h agoHN ↗

I never said it was worth $1M. But it's not infeasible that it's over $100k in value as just an couple of ounces of gold are $10k.

That would be a phenomenally stupid and obvious violation of bribery law.

Nope, that's how crazy weak the US bribery laws are. The only time they really sort of kick in is when it's done on behalf of a foreign nation.

To be convicted of current US bribery laws, you essentially need a written note that says "I am giving you this so you can in an official capacity pass this piece of legislation". McDonnell v. United States gutted any sort of accountability for bribery.

But further, Trump v. United States (2022) has granted the president extra immunity so long as he's doing things in an "official capacity".

It's a violation of what bribery laws should be, but not what they actually are.

And if Trump does keep it as a personal gift, it will be included in a financial disclosure report.

Or what? You think his personal lawyer who heads the DoJ is going to prosecute him?

2h agoHN ↗

Easily the most corrupt administration in my lifetime of 50+ years.

3h agoHN ↗

We already know thanks to Snowden, or did you completely ignore the dump on how the IC hooks into the American tech sector?

3h agoHN ↗

Katsas and Rao, both Trump appointees, tag-teamed again. Trump automatically wins whenever they get a case.

3h agoHN ↗

Personally I am enjoying Muse the most and so far havent hit any limits. I also (i know it's not a popular thing) have enjoyed wearing my Meta Ray Ban's since 2023 even if they break as MANY months later they come back to life.

EDIT: Oh damn getting downvoted, tho not surprising. It looks like Meta Glasses are hated as MAGA, maybe Zuckerberg should call them MAGA glasses ha

3h agoHN ↗

You and anyone i dont know are not special ... to me and thus would never appear in my videos or photos.

2h agoHN ↗

I still enjoy wearing them i dont care what others say as Im using them as intended along with the millions of other smart glass wearers. You really think all 20 million smart glasses wearers are all being creeps - caring to film random strangers? Thats a miniscule population who has no life and who are loner/weirdos! But that's a good narrative for the general public who always fights new technology.

In time one of the big tech will solve the pervert issue by randomizing / anonymizing every face in your photos that's not in your personal network. Once this is done / achieved no one will call them pervert glasses anymore. Im surprised Meta hasnt done this already! They really should!

6m agoHN ↗

Whatever pervert. Everyone who sees you where them thinks your a pervert and its true. Id slap em off your pervert face.

3h agoHN ↗

So you claim: If a similar thing would be filed against OpenAI, it would stand up in court.

That is still not corruption, yet. Also in Germany it is the executive branch which controls who is sued or policed by the stately organs.

So favorism can be passed down this way, but not we are not at corruption yet. If reciprocity is expected, then you could call it that. Or could perhaps even file for negligence in treating all other company actors the same, especially if you are Anthropic yourself.

Still, I blame the US voters as much as the current administration if the later is just clowns and thieves.

Also, IANAL and HN discussing US things is always foreign to me.

3h agoHN ↗

Not at corruption yet? The entire us government is corrupt now not sure what you are going on about

2h agoHN ↗

If the president favors one party over another with no clear benefit to the voters, that is very indicative of corruption. If his organization is also getting donations from said party, it is even more certain to be corruption.

You argue that the courts are not corrupt, hence there is no corruption. Without considering the president.

3h agoHN ↗

These are just very different things. OAI "hacking" anything isn't OAI telling the US Gov what they can and cannot do with their product. Maybe along all kinds of axes, one is more alarming than the other, but it's a canard in this topic.

3h agoHN ↗

> These are just very different things.OAI "hacking" anything isn't OAI telling the US Gov what they can and cannot do with their product.

OAI hacking the chinese government will definitely raise alarms in DC and will be bad for national security. Just because the country that was hacked (australia) is a weaker one doesn't mean the underlying action is not troubling.

2h agoHN ↗

OAI hacking the chinese government will definitely raise alarms in DC and will be bad for national security.

That seems like it's too easy to abuse as a cudgel for whatever companies you vaguely hate. Is ExxonMobil a "supply chain risk" because the effects of climate change might cause geopolitical ructions in the next decade?

2h agoHN ↗

Hate is a pretty strong word here. I don't hate OAI. I am a paying subscriber. All I am saying is maybe its time to switch, show support for Anthropic because it is kinda getting bullied right now and the OAI is not getting enough punishment for their illicit actions. Is it too hard to understand?

49m agoHN ↗

That does not, in itself, suggest they are a supply chain risk. It might label them a national security risk. And you might have your own creative definitions of every word related to supply chains. But we are talking about supply chain risks as the US Gov understands them.

3h agoHN ↗

There's no contradiction there. Pentagon doesn't want Anthropic deciding the guardrails on their own.

3h agoHN ↗

OpenAI has hacked several prominent entities and is allowed to do business as usual but Anthropic putting guardrails on the military's usage of AI is the national security threat while Pentagon itself said that over reliance on AI lead to that attack on school in Minab.

Right, because "supply chain risk" designation is as it pertains to them being a supplier to the military, not a overall assessment of their standing as a corporate citizen. Not to mention that the administration wants to go full steam ahead when it comes to AI development, so there's no internal contradiction here.

5m agoHN ↗

SCR explicitly refers to sabotage. Where is Anthropic sabotaging the US government?

DOW wanted to change the contract after the fact. Anthropic refused. That is not sabotage.

2h agoHN ↗

Most favored companies are a common feature of fascism.

2h agoHN ↗

Like such national champions like Airbus and Volkswagen right?

2h agoHN ↗

Is this a joke? Volkswagen was literally created by the nazi party.

2h agoHN ↗

So what does that say about the current German state, given that it's still a national champion? Not to mention airbus being an EU champion.

2h agoHN ↗

I guess I don't know what "national champion" means. Do they receive different legal treatment from other similar companies? If so, that would be a worrying signal. A common feature of fascism being present doesn't mean you've definitely got fascism, but it does raise a pretty big red flag.

2h agoHN ↗

You're way overthinking this. The administration told Anthropic to let them do something, Anthropic said no, and then they got pissy and started throwing rocks and wouldn't back down because the defining trait of this administration is that they walk into stupid positions and then refuse to back down because backing down would make them look weak and wrong.

You're ascribing complex motives to toddlers.

2h agoHN ↗

This kind of partisanship is corruption. The legal system is being corrupted to serve political ideologies.

2h agoHN ↗

Thats 100% corruption

(Hmm did you edit your reply?)

2h agoHN ↗

For clarity, you don't mean corruption of the court, but corruption of the administration for what you view as unequal enforcement, right?

2h agoHN ↗

Or they could be playing Good Cop / Bad Cop

3h agoHN ↗

I guess it’s the supreme court next.

For all the downsides of losing the business of government contractors, it really would hold Anthropic to their stated values: they’ll never develop AI controlled weapons on this blacklist.

3h agoHN ↗

Admittedly I still need to do some reading on the current ruling, but how this isn't seen as an open and shut case of vindictive prosecution (if that's even a thing for this branch of law?) is astounding. The administration couldn't have made it more obvious there was no merit to their designation of Anthropic.

2h agoHN ↗

Decisions by Executive Branch Agencies <> Prosecution

3h agoHN ↗

Opinion by Katsas and Rao. For those that don’t follow this regularly, those are two of the biggest Trump hacks on the bench.

I suspect this will be reversed en banc.

Anthropic’s argument is really clear and easy to understand: we can’t simultaneously be a supply chain risk and also be a company the DoD demands we change our policies so they can use our models without restrictions.

2h agoHN ↗

Yeah, this is like a textbook bad draw for Anthropic. Unless you're a lawyer for Anthropic, I wouldn't give this ruling much weight at all.

2h agoHN ↗

Anthropic's policies are literally the supply chain risk.

The DoD could have used the same authority to seize the technology if it wanted to. Especially in a time of war. DoD has instead chosen to respect Antrhopic's boundaries and has simply barred anyone in the agency from buying a product that comes with strings attached.

This is 100% on Anthropic for product:market fit failure.

3h agoHN ↗

I know everyone says this is political but it actually seems like a textbook designation. Anthropic wanted to have rules on how the military used AI, the military said no and therefore doesn't want anthropic used anywhere in their supply line.

This is like a pen manufacturer not wanting their pens used to sign drone strike orders, now the military needs to have a special box of pens that don't have stipulations attached. With AI usage it would be the same thing except applied to entire product chains. It seems like it would just add more complexity to operations.

You can agree with the rules anthropic wanted, but having rules set by a private company at all that apply to the military does seem fair for the military to object to.

The Department reasonably feared that Anthropic might manipulate Claude’s design to prevent it from performing national-security functions that the Department deems contractually authorized and necessary

Though they'd probably put the DoD on the cybersecurity whitelist today, the very idea of the claude whitelists for certain functionality already exists and is being used by them today.

3h agoHN ↗

i agree. by nature a lease is more risky than the military having its own model.

however anthropic also believes it is some kind of entity unto itself so it is not at all reliable.

3h agoHN ↗

Anthropic's red lines were 'no fully autonomous AI kill chains' and 'no domestic mass surveillance'. Those are clearly not national-security or DoD functions in the first place, so why would they be in any way objectionable?

2h agoHN ↗

Do you think a private company should be able to accumulate enough wealth and power to dictate policy to the US federal government?

2h agoHN ↗

There are already several private companies that have this, eg. Apple has specific exemptions from tariffs on smartphones, computers, and semiconductors that they got by paying off Trump and promising to make their iPhone glass in Kentucky:

https://thedailyeconomy.org/article/tariff-exemptions-are-bi...

https://www.warren.senate.gov/wp-content/uploads/media/doc/l...

The correct mental model for the U.S. federal government right now is not an omnipotent democratic overseer for economic activity, but rather as just one firm that negotiates directly with other major firms for legitimization and legal protection. Their power is likely to decline further, as is the value of "legitimization", as technological developments erode the military's monopoly on physical force. Interesting times ahead - historically tech transitions like this lead to a splintering of state legitimacy and then a reorganization under new forms of governance.

1h agoHN ↗

I think a private company of any size should be able to offer its products on whatever terms they choose. If the military doesn't like those terms, they're free to do business elsewhere.

1h agoHN ↗

You are obviously being disingenuous, because you are on a thread where the DoD is not just electing not to buy Anthropic's service, but also trying to bully them into submission with the unrealistic threat of the DPA, punitively and disproportionately trying to label them a national security risk, and invoking supply chain issues normally applied to our worst adversaries, for the first time putting an obviously patriotic American country on the same footing as North Korea, Iran, China and Russia.

Remember, the Anthropic red line was "no war crimes and no mass surveillance of the US population." You may think that war crimes are cool, and that mass surveillance of the US population by the department of defense would be fine, but consider the natural consequences, both for democracy and for any adversary's conduct in future wars.

1h agoHN ↗

obviously patriotic American country

Hi, just informing you of the typo.

1h agoHN ↗

You mean like pharmaceutical companies refusing to supply chemicals for lethal injection?

1h agoHN ↗

Its not dictating policy. Any company of any size should be able to set any contract they want with the government or any other party.

3h agoHN ↗

The reason it appears corrupt is that OpenAI has the exact same restrictions (https://openai.com/index/our-agreement-with-the-department-o...) but was not declared a supply chain risk. If two vendors have the same restrictions and they only designate one, then the designation must be arbitrary and/or capricious.

Edit: I was wrong, the statement I linked is extremely dishonest and I was misled. The contract language lower down makes it clear that there are no "red lines", and OpenAI products can in fact be used for mass domestic surveillance, autonomous weapons, and social credit systems as long as they are considered legal.

2h agoHN ↗

Were they the same restrictions though?

OpenAI just said no surveillance of U.S. persons.

Anthropic could have gone further; I think it's likely they did.

2h agoHN ↗

There are three restrictions:

No use of OpenAI technology for mass domestic surveillance.

No use of OpenAI technology to direct autonomous weapons systems.

No use of OpenAI technology for high-stakes automated decisions (e.g. systems such as “social credit”).

These are stronger than Anthropic's restrictions (https://www.anthropic.com/news/statement-department-of-war), as OpenAI says themselves: "We think our agreement has more guardrails than any previous agreement for classified AI deployments, including Anthropic’s. [...] Based on what we know, we believe our contract provides better guarantees and more responsible safeguards than earlier agreements, including Anthropic’s original contract."

Edit: I was wrong, see my original comment. Sorry.

2h agoHN ↗

The article only cites language for surveillance.

The other stuff...there's zero citations or quotes. Meaning that OpenAI could be having their cake and eating it too, winning a public victory, with no validation on the actual language, consequences, or enforcement.

2h agoHN ↗

Do you think OpenAI's terms for the DoD are published on a website? Pretty sure when Anthropic got zapped, OpenAI sent DoD a memo 500ms later saying they wouldn't restrict use.

Look at it pragmatically. What does the DoD use every single procurement for? Hint: military use.

2h agoHN ↗

I thought the difference is that clearly written rules or SLAs are acceptable and can even be negotiated before signing a contract, but having a person, in this case Amodei himself, manually approve DOJ's usage case by case with his own moral judgement after a contract is signed is not okay.

2h agoHN ↗

OpenAI has the exact same restrictions

No it doesn't. Specifically OpenAI had a "all lawful purposes" clause (which plausibly includes the existing mass surveillance apparatus), but Anthropic did not.

2h agoHN ↗

You're right, what an incredibly dishonest statement. The actual contract language in there makes it clear that there are no restrictions. My bad.

2h agoHN ↗

Non-sense. Pentagon has many many uses of AI besides autonomous weapons and mass domestic surveillance, which Anthropic doesn't restrict. ie: intelligence analysis, target selection, payroll, inventory, research, supply chain and logistics, medical, bureaucracy, ...

2h agoHN ↗

We cannot subordinate our military’s decision making power — in any arena — to a private company.

Our military must also not be dependent on a private company that believes it has the moral prerogative to control our military’s decisions, and would have the technical capability to do so.

2h agoHN ↗

No entity should have a right to dictate whether your private company does business with someone or not. The military can pound sand if they don't like your contract terms. That is if you believe in democracy and capitalism. If you don't, then it's not a problem to you.

2h agoHN ↗

You’re still absolutely free to do business with Anthropic.

Our military is simply choosing not to do business with them, or anyone that depends on them.

If you believed in democracy, you wouldn’t be supporting the EA-infected corporation that tried to make our democratic institutions subordinate to their corporate decision making.

2h agoHN ↗

I support any and all moves that empower private persons and corporations over the infinite force of governments. They didn't try to make anyone subordinate to anything. They made a proposal. Trump pissed and generally made a mess as he usually does and then they randomly declared them a supply chain treat.

56m agoHN ↗

That is not what they are doing. They could have just canceled the contract and paid the exit clause. This is retaliation, because Anthropic would not move on their pre-negotiated terms. As a result, they are now been from being used anywhere in the US government.

Let me ask you this, if Anthropic did allow them to use it for surveillance… do you think it would stop at the Pentagon?

58m agoHN ↗

The military is bound by contract, just like any other government agency. They entered into a contract, with these clauses well-known. This was OK because they have all the same problems every other organization uses AI for.

They could’ve just negotiate a new contract with OpenAI, without banning it from every government agency. But I’m sure that would’ve triggered some kind of extra clause and cost money…

Your entire statement lacks any type of fact.

48m agoHN ↗

This is ridiculous. Anthropic should be free to say the terms for using their service. It doesn't "subordinate" the military, and the military is far from some infallible, unquestionable force here.

If the military wants to use AI to autonomously kill people, they can - Anthropic is not stopping them - thy just can't with Anthropic's services.

The government retaliating by then claiming that any use of Anthropic is risk is an obvious farce. How would Anthropic be any less of a risk if they let Claude autonomously kill people?

31m agoHN ↗

Right but the military wants to be able to use a tool they are paying for in all cases, not just ones the manufacturer thinks they should.

If I sold steel to the Pentagon but then tried to say they they couldn't use it for ships and tanks but they are free to use for warehouses they would react the same way as they are doing now.

Edit add: What is targeting? What is surveillance?

If someone in the intelligence analysis department uses AI to generate a report, then someone else uses that report for targeting did they just break the terms? Where is that line?

Much easier for the Pentagon to say no.

19m agoHN ↗

If I sold steel to the Pentagon but then tried to say they they couldn't use it for ships and tanks but they are free to use for warehouses they would react the same way as they are doing now.

They sure as hell shouldn't! Selling steel for any use except ships and tanks is a little odd but it's not a risk.

(I'm ignoring the "but then" because this was about future sales not previous ones.)

17m agoHN ↗

Your "but then" is off-base. This is selling steel for the express purpose of nuclear reactors, with a contractual clause against its use in tanks, and the US government deciding that it doesn't feel like abiding by the rules in the contract.

2h agoHN ↗

It's not a great analagy; it's more like a pen manufacturer not wanting their pens used to sign drone strike orders, who then only ships pens with cameras and solenoids so that the point stays retracted until the camera verifies that the paper doesn't include a drone strike orders.

2h agoHN ↗

i am not sure even this covers it.

it would be like the pen manufacturer who ships pens with an automatic point retractor, AND a video livestream to the manufacturer from the pen AND remote control of the point retractor.

anthropic and contractors monitor the livestream remotely to make sure the pen is not signing drone strike orders and may choose to activate the retractor.

35m agoHN ↗

You are repeatedly saying they spy on their users? Prove it. Then prove t he other ai companies don't. Then prove that the service they offered to the US government didn't have spying disabled.

2h agoHN ↗

This is like a pen manufacturer not wanting their pens used to sign drone strike order

I am pretty receptive to the "guns don't kill people, people kill people" argument, but we are taking a big leap from pen to llms/artificial intelligence. I am sympathetic to some of your other points, but I simply must reject this analogy.

2h agoHN ↗

"the government wants to use our tool to murder people", and declaring that company that says "no" into a "supply chain risk" is absolutely retaliatory and an attempt by the government to influence the behavior of the company.

The moral and ethical scale of the issue makes this far different than someone buying a pen.

1h agoHN ↗

"the government wants to use our tool to murder people", and declaring that company that says "no" into a "supply chain risk" is absolutely retaliatory and an attempt by the government to influence the behavior of the company.

If Lockheed could brick its planes if the US planned to use them for military action it disagreed with (and showed some indication they couldn't be trusted not to do it), would they be a supply chain risk?

It is not the role of a defense contractors to have oversight and control power over the military they're supplying.

5m agoHN ↗

The military could just use different AI models for the purposes Anthropic does not want its models used for.

Purposes Anthropic already spelled out in contract form.

2h agoHN ↗

Ridiculous hypothetical for analogy purposes, but, imagine if Anthropic had developed a new type of rifle that the military was considering using, which had a black-box AI system that could prevent the trigger being pulled when aimed at certain targets. The military says, ok that's cool, as long as we can be in control of that decision-making process. Anthropic says, no, we know better than you and better than the law what kind of targets should and should not be shot with our rifles. The military would then respond “lol, lmao even” and then deem them to be a supply chain risk and adopt another rifle instead.

2h agoHN ↗

You’re just describing the exact situation we’re in but substituting a drone for a rifle. If the government is mad they should just partner with a contractor who is less concerned about this, which lo-and-behold they did it’s a company called OpenAI.

Anthropic isn’t a supply chain risk since they easy found someone else

2h agoHN ↗

That’s not even the end of the story. Anthropic has sued. They really want to sell their rifles to the government and retain control.

2h agoHN ↗

Or they could just not buy the product in the first place. The supply chain risk part is pure retribution.

1h agoHN ↗

That’s literally what they’re doing. That’s what supply chain risk means.

They don’t buy the product, and the product can’t be used in the things they do buy.

1h agoHN ↗

Supply chain risk ensures nobody in the chain is buying it and thus becoming subject to Antropic's demand of usage control. They are still free to use it for non-DOD purposes, but if Antropic wants control over DOD, DOD has the right to say "no, we won't have anything to do with you, and thus you're not getting any control over us". I agree it may be unpleasant for Antropic but DOD has the right - I'd say even responsibility - to not submit to control by any private party.

2h agoHN ↗

Anthropic wanted to have rules on how the military used AI

No, they want to have rules on how the military used Anthropic AI.

Military would still be free to use OpenAI for the nasty stuff

2h agoHN ↗

Yes, in fact the military has a system in place to make sure that they only that they only use alternate suppliers and on Anthropic AI, They do this by placing a designation on Anthropic AI that it is a risk to the supply chain, which forces purchasers to use other suppliers.

1h agoHN ↗

I don't think this is how preferred suppliers have typically worked through the supply chain risk considering the US has definitely had preferred suppliers before and has not historically used this against a US company that was not on the list and the power of such a designation extends far past the military into all parts of the government. I'm pretty sure this has more traditionally been relegated to simple requirements or specifications.

2h agoHN ↗

I know everyone says this is political but it actually seems like a textbook designation

It literally is a textbook definition, signed into US law:

“Supply chain risk,” means the risk that an adversary may sabotage, maliciously introduce unwanted function, or otherwise subvert the design, integrity, manufacturing, production, distribution, installation, operation, or maintenance of a covered system so as to surveil, deny, disrupt, or otherwise degrade the function, use, or operation of such system (see 10 U.S.C. 3252).

To add onto what another commenter said, the pen analogy would be more like the manufacturer designing pens that stopped working when used to sign strike orders they disagreed with.

2h agoHN ↗

so as to surveil

How does Android and iPhone meet the grade given apps have pretty consistently leaked locations, base layouts etc?

2h agoHN ↗

"risk that an adversary may" any of them.

China, Russia, Iran, come to mind.

47m agoHN ↗

Why is this downvoted? Seeing a bunch of downvotes right now that feel disingenuous (or just knee jerk on keyword matching). Ideally we downvote low quality content not things we don't like.

6m agoHN ↗

Because it's incorrect.

Those are (arguably) adversaries but the actor here is Anthropic, which is not an adversary.

1h agoHN ↗

The pen example makes sense if the intermediary were to ship the pen as part of the final product but not if the pen is simply used to draft designs of the final product. It seems that this designation would prohibit using the pen anywhere in the process which doesn't really make sense.

1h agoHN ↗

It is not the textbook definition, because what Anthropic is doing is not sabotage, malicious, or subversive. Those are the key words in the definition. They are just refusing to add a feature to the military's specification. So their bid falls short of requirements.

40m agoHN ↗

They are just refusing to add a feature to the military's specification.

That fails to accord with the claim:

The Department reasonably feared that Anthropic might manipulate Claude’s design to prevent it from performing national-security functions that the Department deems contractually authorized and necessary

18m agoHN ↗

The department feared Anthropic would refuse if it was used to mass surveil on Americans or kill people without human oversight. Facts already laid out in the terms. Instead of simply canceling or negotiating, they used overwhelming government force against it to apply a designation never before applied to an American company. When its an interaction between trump/trump's government and any other party, it is a good first approximation to assume Trumps side are wrong.

18m agoHN ↗

That isn't sabotage, that is simply product design. Anthropic is free to create their products that refuse to kill people, and the DoD is free not to buy those products if they don't fit their needs.

However, that's not what a supply chain risk is. It's not an order to "don't buy these products if they don't work the way we want them to", its designating Anthropic as a national security threat because they might intentionally sabotage US military operations.

15m agoHN ↗

Selling a pen labeled "this pen will refuse to sign certain orders" is not sabotage or malicious and is thus not a supply chain risk. The DoD is free to not buy from Anthropic, but designating them as a supply chain risk is incorrect, as well as arguably arbitrary and capricious given their public criticism of Anthropic's beliefs.

2h agoHN ↗

Wouldn't that make any product with a licensing agreement a supply chain risk?

2h agoHN ↗

No, of course not, because life isn't black and white. Just those with licensing agreements that conflict with the militaries mission, where the product could be manipulated to hinder the mission. Most manufacturers would jump at the chance to rewrite their licensing agreements specifically for the military just to get a government contract.

2h agoHN ↗

But if they don’t jump at the chance to retroactively rewrite the already-signed license, you’re OK with designating them a supply-chain risk?

That’s going to make it rather risky for anyone to sign licenses with the DoD. In fact, it renders the licenses pointless since you just have to do anything the licensee says.

2h agoHN ↗

I mean typically the outcome of civil suits is black and white (at least on a per-claim basis).

So Amazon and Microsoft don't enforce cloud licensing agreements with the USG? If the government wants to add 3,000 Windows users to support their mission Microsoft is shit out of luck in getting paid for them?

54m agoHN ↗

This was not manipulated to hinder the mission. Every account of this indicates it was clearly spelled out. They could not use it for mass surveillance or for targeting. The lawyers at the DOD did not miss this. They agreed to the terms, because they had no intent to use it for such purpose purposes.

This is like the change order from hell.

Nothing was stopping the DOD from just entering into a new contract with OpenAI…

2h agoHN ↗

except it's also stipulating that the paper supplier upon which the orders are signed also cant use anthropic. or the table maker. even though the AI helping make sleeker paper and tables has nothing to do with deciding what to bomb (analogy breaking down lol)

and trump admin originally went WAY further.

they originally said the pen, paper, table etc suppliers cant use anthropic even for products and subsidiaries that have nothing to do with their govt work; far beyond the supply chain of the pen (bomb). Mega Corp Pepsi Co Taco Bell Inc. LLC -> Staples > Pen Co. Sure pen co might be reasonabale. But telling taco bell they cant have claude help expand the baja-blast-radius is way too far. that would be just like secondary sanctions.

iirc there are 2 court cases. one ruled the original order was too broad and i think that still stands? so at least it's narrowed slightly to just the immediate supply chain?

but ianal

2h agoHN ↗

Using Claude for working on the refrigerators at the commissary is not a supply chain risk. You're just making stuff up.

2h agoHN ↗

textbook designation.

Hardly. I invite you to [read the opinion][1], particularly the great pains the majority spends on wrangling the definition of the word "manipulate."

Basically, [FASCSA][2] says to denote a company is a "supply chain risk," the govt has to meet the law's rigorous definition of what a "significant" risk actually is. That definition contains a catch-all "or otherwise manipulate the function" of the thing at hand (in this case, Claude) at the very end.

The govt's whole argument is "Well Anthropic has admitted that it can technically "manipulate" the response, therefore its a significant risk, therefore we designate it as such."

The dissent gives an analogy:

A library might post a sign saying, “Do not shout, loudly talk on the phone, play music, or otherwise disturb others.” The common understanding would be that the rule bans bringing a boom-box into the reading room with the volume turned on high but not listening to music with headphones set at a modest sound level—even though both constitute “playing music.”

It is as if the govt argued "ah ah, Anthropic played music on their headphones, they broke the rules! We therefore have the authority to ban them" and the majority insanely agrees. It is clear to anyone with basic reading comprehension that the "manipulate" clause is supposed to continue the idea of malicious or subversive manipulation that the whole section entails. The hand-waving the majority uses gives the whole game away.

[1]: https://www.politico.com/f/?id=000001a0-d91e-d276-aff6-f97f3...

[2]: https://en.wikipedia.org/wiki/SECURE_Technology_Act

2h agoHN ↗

“the military said no and therefore doesn't want anthropic used anywhere in their supply line”

It’s clearly a punitive measure and has nothing to do with national security.

If a supplier uses Anthropic to develop a product, how does that pose a risk to the DoD or national security? The DoD can specify that a third party system can’t rely on Anthropic for DoD use without designating the company a supply risk. It was very clear that the administration was punishing the company for saying “no”.

2h agoHN ↗

Anthropic took the position that our military’s decision making power should be subordinate to Anthropic’s constraints.

Any dependency on a company that thinks they have that moral authority and has the technical means to enforce it is absolutely a risk to the supply chain.

If you want to blame someone or something for this, we should start with Dario and “effective altruism”.

1h agoHN ↗

But why can’t the military just not use Anthropic? Why can’t the DoD say “ok we’re going with a different vendor”? Even if you find Anthropic’s stance distasteful, why support taking punitive action on Anthropic?

30m agoHN ↗

Why can’t the DoD say “ok we’re going with a different vendor”?

That's exactly what they're doing. It turns out the DoD is a really big bureaucracy and has process to make sure they thoroughly exclude a vendor and transitive dependencies on that same vendor.

19m agoHN ↗

I feel like in this thread no one is understanding what supply chain risk designation is. The government can just not use Anthropic, and that's exactly what they're doing, and they are not using it so much that they don't want Anthropic anywhere in their chain of supply. It's not necessarily punitive, the government is just covering their tracks so that if somewhere in their supply chain Anthropic exists, they want to remove them. They are complying with Anthropic's demands to not be used in war and the DoD says, okay, we won't use you anywhere and also enforce that we won't use you, just like you wanted.

14m agoHN ↗

They are complying with Anthropic's demands to not be used in war

There was no such demand from Anthropic. Why are you making things up?

22m agoHN ↗

Anthropic took the position that our military’s decision making power should be subordinate to Anthropic’s constraints.

Not at all. They want their product kept out of specific decisions because it's not capable.

2h agoHN ↗

I think this was discussed ad nauseum last time so I am wondering if somehow this has changed but the biggest part of the issue last time was the retaliation. You seem to suggest that this was due to the government not wanting restrictions on their actions. I feel this severely downplays how unusual this designation is considering, like Anthropic says, this has not been applied to domestic companies.

Why couldn't excluding Anthropic be done a different mechanism than a supply chain risk. Why wouldn't this be a standard part of an agreement or a request and simply refuse to renew or cancel a contract rather than being designated a supply chain risk. If some third party contractor for an unrelated non military reason wanted to use Claude as part of their process, it seems perfectly allowable.

If this was a remotely standard way of operation, why did a fair amount of corporate America sign briefs concerned with the retaliatory aspect.

Parts of the action seemed wholly retaliatory as well since Pentagon officials certainly used it as a threat. Why can't a US company have views contrary to the policies of the US government? Certainly the US government is free to not do business with them, but this designation affects everybody doing any kind of indirect business with the US government which is a rather long chain. If this becomes a legitimate mechanism, how might we distinguish caring about a secure supply chain and simply wiping out a company that disagreed with a pro war attitude? If a machining shop had a policy against manufacturing weapons at all, could they be blocked from making server racks for Microsoft or perhaps light fixtures for the Department of Labor? There are plenty of areas that are, again, non military? I don't think it's credible to claim that Anthropic will deliberately sabotage operations.

2h agoHN ↗

Anthropic opposing the US government

Is it not possible that this would change the risk profile of depending on them. It makes sense to work with people who support you than oppose you for things which are critical.

1h agoHN ↗

- Having principles and sticking to them is not opposing.

- Just because you don't do everything someone wants you to do does not make you a supply chain risk.

1h agoHN ↗

My point is did everyone know all of those principals and how committed Anthropic was to them from the beginning or did new information come in and now they need to adjust. Just because something is a term in a contract that doesn't mean it's necessarily strongly held belief that will never change.

51m agoHN ↗

Who runs the government changes every 2 to 4 years… are you suggesting we completely swap every vendor in the US government to align with whatever political party is in office?

There’s nothing indicating Anthropic was not keeping their end of the contract. If they had, there would have been other recourse.

25m agoHN ↗

are you suggesting we completely swap every vendor

I think American companies should be supporting the government as much as possible. Even when it switches.

There’s nothing indicating Anthropic was not keeping their end of the contract.

Which is why we are talking about risk and not breach of contract.

1h agoHN ↗

I think the better analogy is an insane nuclear power plant manager deciding it wants to buy pens to use as neutron-flux regulator rods — because after all, a pen is functionally a pencil and a pencil is made of graphite.

Then the pen manufacturer hears about this and says “Our pens are not made of graphite and are not suitable to be used in nuclear reactors”, to which the reactor owner says “it’s fine, they fit in the graphite rod holes, and we’re just using until the next generation of pens come out which will do an even better job”, and then the pen manufacturer says “I’m not going to sell you any pens until you agree that they will be used only writing.”

1h agoHN ↗

This is the most accurate parallel as far as I can tell. I've not seen any evidence that Anthropic deliberately built automated systems or escape hatches that literally prevent the US Government from using Claude to do these things. Other than the basic AI Safety mechanisms in place for everyone/general use. It's almost the reverse, where they explicitly don't want to strip away guardrails that say things like "don't kill people".

The intent and framing matters a lot here. Refusal to remove safety features is a LOT different than deliberately building mechanisms to sabotage would-be operations.

7m agoHN ↗

The previous power plant manager had, of course, already signed a contract to those terms; the power plant is subsequently under new management and upset about being bound by this contract, so they designate that none of their suppliers of parts and fuel are allowed to have any commercial dealings with the pen manufacturer or use these pens for any purpose, even writing.

1h agoHN ↗

Antropic: "We don't want our AIs to be used by the Army to do yucky Army things!"

Army: "OK, we will make sure not to use your AIs"

Antropic: "How dare you! We are suing! We intended for you to keep using it but do only what we want!"

Army: "..."

28m agoHN ↗

They weren't against military use of their AI. They were against using it to kill American citizens without oversight or mass surveil Americans.

1h agoHN ↗

This would be like Boeing refusing to let the DoD fly a military 737 at over 800MPH, and they designate them a supply chain risk because they really really want to make the plane go past 800MPH.

1h agoHN ↗

Anthropic did not change the terms. Those were the terms the US Government signed. It was not secret, it was explicit identified and accepted as a term.

The analogy would be: “A customer agreed to a contract, and after running into a clause of the contract they no longer wanted to follow…canceled the contract unilaterally…which also violated the contract.”

42m agoHN ↗

And then declared the other side a supply chain risk, claiming it is a potential vector for a national adversary to break in and cause unwanted bad things to happen unrelated to this contract.

It seems like absurdly bad faith starting at breaking the contract (over "you have to follow the law", no less!) and then to retaliate after that with trying to destroy the company's reputation and ability to do business. The boot licking going on here justifying the government operating in bad faith is both disappointing and short sighted. I didn't think the leopards would eat MY face!

52m agoHN ↗

The Department reasonably feared that Anthropic might manipulate Claude’s design to prevent it from performing national-security functions that the Department deems contractually authorized and necessary

I.e. Anthrophic cannot be trusted to honour a contract.

Who'd have guessed?

30m agoHN ↗

In almost any case I am inclined to trust entity not trump or trumps government. So is true in this case, where they pissed their pants at anthropic simply making a proposal and decided to use overwhelming government force against it. I will leave you to decide who you consider more trustworthy, Trump or Anthropic.

37m agoHN ↗

but it actually seems like a textbook designation

How can it be a textbook designation when designating a US company as a supply chain risk is unprecedented? So many actions under the Trump administration are unprecedented it starts to feel like the norm.

No other administration (Republican or Democrat) would do this. The DoD didn’t have a problem using Anthropic’s models during the raid on Venezuela and early on in the war with Iran.

Anthropic says to the former Fox News host it doesn’t want its models used for domestic surveillance or in kill situations without a human in the loop; all of a sudden they're a supply chain risk?

Seems obviously political.

9m agoHN ↗

Anthropic says to the former Fox News host it doesn’t want its models used for domestic surveillance...

Lol, do as we say not as we do!

In addition to monitoring activists in the vicinity of Anthropic executives and keeping tabs on protests near physical Anthropic assets, the firm is also implementing a “pre-crime” approach, attempting to predict incidents before they happen.

https://prospect.org/2026/09/09/anthropic-artificial-intelli...

27m agoHN ↗

It would be pretty surprising to allow a private company to control the military's use in realtime.

3h agoHN ↗

Wtf is life just court battles back and forth for everything forever now?

2h agoHN ↗

I guess it beats physical battles to resolve disputes.

Without taking sides in this statement, I do think it's important for a private company like Anthropic to have a mechanism it can turn to when it feels it's been inequitably treated by the government.

2h agoHN ↗

Grok didn't push any buttons. People did.

2h agoHN ↗

People who trusted Grok because other people told them Grok was trustworthy.

2h agoHN ↗

I don’t agree with the decision, but I don’t think courts should be able to easily overturn the federal government’s findings when it comes to national security in a specific decision like this.

2h agoHN ↗

Is this something to do with anthropic model being used to kill 150 children in school bomb via palantir?

2h agoHN ↗

This is more about wringing Anthropic's hand to agree for handful of defense companies to be the official AI translators to government.

2h agoHN ↗

Posted this in the wrong thread.

Anthropic isn't stopping me from getting Chinese parts, Yukon Jack and good Cadbury chocolate.

trump is. Designate him!

2h agoHN ↗

The hidden upside for Anthropic is now they won't be forced to refer to AI as "SI".

2h agoHN ↗

Genuine question: does anyone know what concrete obligations this designation actually imposes? Everyone's arguing about the politics but I haven't seen a clear explanation of what Anthropic is now legally required to do or not do.

1h agoHN ↗

Not sure if I’m just in my own national security bubble, but I find it troubling to see the perspective that most of the conversation in this thread is coming from.

The US government took a legal designation explicitly crafted to protect against foreign adversaries and deployed it against a private, domestic entity, to their immediate and great detriment.

1h agoHN ↗

I think both sides are wrong. In no particular order:

US does not buy weapons that self-regulate generally. The US can and has purchased weapons with stipulations on how they should be used. For instance, and I'm making this up, they might purchase cluster munitions for smashing up an airfields, but with a stipulation they may not be used where humans are present or something. The munition doesn't check GPS and refuse to detonate if GPS doesn't indicate it's over some Russian airfield. Nor does an M4 fail to fire if it's on US Soil. Anthropic tried to build safeguards and out-regulate the government. Everyone here should know that such limitations would (can and have, see some famous IFF spoofing incidents) be exploited by an enemy, which is generally why they aren't acceptable in a military context. Without seeing the contract signed, one possibility is Anthropic tried to push regulations onto the government, and Anthropic gets to ride away on a high horse.

The other side: The Supply Chain Risk feels like an abuse. It's likely a valid designation and likely has its historical uses. If this was a contract issue, that would have been the correct way to litigate. Instead, again without seeing the contract, it feels like this is way to try and stifle their uptake in defense sector; basically attempting to strong arm them by choking a business segment off. Again, if there is a in fact a legitimate breach of contract here, it should be litigated as such. The alternative is there is no such breach, and Anthropic built limitations into the contract and the Pentagon just has buyers remorse. Honestly this wouldn't surprise me, the federal government generally incinerates tax dollars, and with the massive marketing hullabaloo pushed by AI companies, its completely likely a giant contract was signed without reading the fine print.

Honestly both sides of this annoy me.

30m agoHN ↗

The difference between Anthropic and a cluster bomb supplier is that cluster bomb manufacturing in the United States requires permits. The government is only going to give them to companies that are working with the United States and its allies, which means that company has zero leverage to make requirements (e.g. "don't use them on humans.")

Separately, as a note to your made up example:

Cluster bombs are uniquely efficient against humans, especially in trenches. The US is not a signatory to the international treaty banning their use. It does not like being limited in how it conducts war. I strongly doubt that it would agree to terms from a private enterprise to similar effect.

1h agoHN ↗

All AI is a supply chain risk. I think people should know that about now. You can't keep it in a box. The way code works as a model is that is not super sentient thing with nefarious intentions. It is just pure automaton.

Let me explain, if it learns something from training data to do certain things from code it has online it can install or use a code that is vulnerable from a security perspective.

44m agoHN ↗

I think the real, and continuing, story here is the US military and the US govt in general continuing to let ego degrade capability. I'm not going to get into a discussion about what is legal, I am personally not interested in that distinction here, the core point is that this is the US being stupid, again.

25m agoHN ↗

Judge Gregory Katsas wrote in the majority opinion for the U.S. Court of Appeals for the District of Columbia, which Judge Neomi Rao joined. Katsas and Rao were appointed by President Donald Trump.

Before his appointment to the bench, Katsas served as Deputy White House Counsel in the first Trump administration

[Rao] was appointed in 2019 by President Donald Trump, having served in the Trump administration from 2017 to 2019 as administrator of the Office of Information and Regulatory Affairs

The autocracy is in full swing.