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Anthropic signs a $200M deal with the Department of Defense

anthropic.com

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Re: Anthropic signs a $200M deal with the Department of Defense

#62
post #18

LLMs are a key enabling technology to extract real insights from the enormous amount of surveillance data the USA captures. I think it's not an understatement to say we are entering a new era here! Previously, the data may have been collected, but there was so much that effectively, on average no one was "looking" at it. Now it can all be looked at.

If you think about LLMs as new types of databases, it's quite obvious that they'll start winning over many types of legacy systems. They ingest unstructured data, they have a natural query language, and they compress the data down into manageable sizes. They might hallucinate, but there are mechanisms for dealing with that. These won't destroy actual systems of record, but they will obsolete quite a lot of ingestion…

LLMs don't make for a particularly good database, though. The "compression" isn't very efficient when you consider that e.g. the entirety of Wikipedia - with images! - is an order of magnitude smaller than a SOTA LLM. There are no known reliable mechanisms to deal with hallucinations, either.

So, no, LLMs aren't going to replace databases. They are going to replace query systems over those databases. Think more along the lines of Deep Research etc, just with internal classified data sources.

Re: Anthropic signs a $200M deal with the Department of Defense

#64
https://www.cnbc.com/2025/07/14/anthropic-google-openai-xai-...

> Anthropic, Google, OpenAI and xAI granted up to $200 million for AI work from Defense Department

So it is "up to" $200M, and 4 companies are getting it.

I get the first 3, but what on earth is xAI providing to the military?

Re: Anthropic signs a $200M deal with the Department of Defense

#65

Great news! Congrats to Anthropic! I like to see big tech engage with the govt and military.

What changed? 2017 HN would be very different on this take.

I agree, feels very LinkedIn sometimes.. that's not a good thing..

Re: Anthropic signs a $200M deal with the Department of Defense

#67

Earlier quoted context omitted.

If you live in US, taxes you pay directly fund DoD. So if you sponsor their activities, why can't Anthropic do business with them? Which other company would you rather get their (your) money?

Taxes don't directly pay for military spending. If tax revenue, for whatever reason, dropped off a cliff, they'd continue giving money to the DoD, and just increase debt / money printing to cover the difference.

If there's not enough money from taxes, they will borrow/print more to cover total deficit (not specific to DoD). Otherwise, tax money will go directly to DoD.

Re: Anthropic signs a $200M deal with the Department of Defense

#68
post #62
post #18

Earlier quoted context omitted.

If you think about LLMs as new types of databases, it's quite obvious that they'll start winning over many types of legacy systems. They ingest unstructured data, they have a natural query language, and they compress the data down into manageable sizes. They might hallucinate, but there are mechanisms for dealing with that. These won't destroy actual systems of record, but they will obsolete quite a lot of ingestion…

LLMs don't make for a particularly good database, though. The "compression" isn't very efficient when you consider that e.g. the entirety of Wikipedia - with images! - is an order of magnitude smaller than a SOTA LLM. There are no known reliable mechanisms to deal with hallucinations, either. So, no, LLMs aren't going to replace databases. They are going to replace query systems over those databases. Think more along…

Maybe query UIs but RAGs like Deep Research depend on old fashion query systems.

Re: Anthropic signs a $200M deal with the Department of Defense

#69

When people ask "how do we fix our government?" I answer "Did you try turning it off and on again?"

There's more than a grain of truth here.

I think we're in a Gall's Law situation.

The system has evolved to extreme complexity and no longer works as intended because people learned to game the system, which keeps the best people for the job out of the system; emasculates the essential checks and balances; and creates a vicious cycle that adds further complexity and races to the bottom.

The (likely) only way to fix things is to treat our history to date as a rough draft and to start over with simple systems that work, evolving only as necessary.

Re: Anthropic signs a $200M deal with the Department of Defense

#70

> With CDAO and other DOD organizations and commands, we'll engage in: - Working directly with the DOD to identify where frontier AI can deliver the most impact, then developing working prototypes fine-tuned on DOD data - Collaborating with defense experts to anticipate and mitigate potential adversarial uses of AI, drawing on our advanced risk forecasting capabilities - Exchanging technical insights, performance dat…

Also, apparently it's not just Anthropic.

https://www.cnbc.com/2025/07/14/anthropic-google-openai-xai-...

Google, OpenAI,and xAI also get $200M each.

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