If I sell red widgets that I make by hand to the government, I won't be allowed to use Anthropic to help me write my web-site.
What it does is prevent companies that Anthropic needs to do business with from doing business with Anthropic.
If Anthropic “needs” the government to not have this rule, then perhaps they had a losing hand, and they overplayed it.
I don’t agree with you and think you’re being melodramatic, but if you are right, that’s my response.
Is that not sufficient here?