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Pentagon formally labels Anthropic supply-chain risk

wsj.com

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Re: Pentagon formally labels Anthropic supply-chain risk

#3

Post by jawns »

The consequence is that any company that does business with the U.S. military, and potentially any company that does business with the government in general, must stop using Anthropic's products for that work.

Anthropic has vowed to fight this designation in court.

Without weighing in on the constitutionality or legality of the move, I think it's obvious that this kind of retaliation power is unmatched by any private business that has a contractual dispute.

If a private business doesn't like Anthropic's terms, it can walk away from the deal, but it can't conduct coordinated retaliation with other companies before ending up in antitrust territory or potentially violating the Sherman Act.

Now for my editorializing: The fact that Pete Hegseth is willing to apply this type of designation against a U.S. company simply because he doesn't like its terms is pretty chilling. It's all the more scary once you consider which terms he objects to.

Re: Pentagon formally labels Anthropic supply-chain risk

#4

Post by mitthrowaway2 »

jawns wrote: post #3

The consequence is that any company that does business with the U.S. military, and potentially any company that does business with the government in general, must stop using Anthropic's products for that work. Anthropic has vowed to fight this designation in court. Without weighing in on the constitutionality or legality of the move, I think it's obvious that this kind of retaliation power is unmatched by any private…

Every action has an opposite reaction. The DoD has made itself riskier to do business with, and future contacts will have to price that risk in.

Re: Pentagon formally labels Anthropic supply-chain risk

#5

Post by alephnerd »

mitthrowaway2 wrote: post #4
jawns wrote: post #3

The consequence is that any company that does business with the U.S. military, and potentially any company that does business with the government in general, must stop using Anthropic's products for that work. Anthropic has vowed to fight this designation in court. Without weighing in on the constitutionality or legality of the move, I think it's obvious that this kind of retaliation power is unmatched by any private…

Every action has an opposite reaction. The DoD has made itself riskier to do business with, and future contacts will have to price that risk in.

FedRAMP and FedRAMP adjacent revenue is non-negotiable for vast swathes of businesses. The designation of "supply chain risk" is viral in nature because no GRC team will dare take such a risk within their supply chain because most customers add BOM requirements in contracts so this will end up falling under those already.

There's a lot of backchanneling going on between Emil and Dario because everyone's in the same circles but it's all for naught.

Re: Pentagon formally labels Anthropic supply-chain risk

#9

Post by tantalor »

scuff3d wrote: post #6

Huh, and I thought conservatives were all about government staying our of the way of the private sector. Go figure...

Conservatives haven't had any power in Washington in decades. They are in thrall to MAGA now, which is all about seizing the means of production when its convenient.
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