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

499 points · 900 comments · cramer4next

  1. HarHarVeryFunny · · focus · HN ↗
    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.
    1. ajross · · focus · HN ↗
      > 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.

      1. parineum · · focus · HN ↗
        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.

        1. knollimar · · focus · HN ↗
          They're saying no one who works with them can eat non free range chickens too, no?
          1. parineum · · focus · HN ↗
            And all those companies can choose not to work with them too.
            1. ajross · · focus · HN ↗
              > And all those companies can choose not to work with them too.

              Right, and if they chose independently to do so it would be their right. What makes this problematic is that "all those companies" did not choose to not to work with the Pentagon (or with Anthropic spefically, for that matter). They were compelled to using using a regulatory tool which was originally intended to combat hostile foreign espionage.

              That's not a "choice" made by those third party suppliers. The Pentagon is using the Supply Chain Risk designation as a contract negotiating tactic.

        2. Jtsummers · · focus · HN ↗
          > 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.

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