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The term lawful use is a joke to the current administration when they go after senators for sedition when reminding government employees to not carry out unlawful orders. It’s all so twisted.
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To be clear, the sticking point is actually that the DoD signed a deal with Anthropic a few months ago that had an Acceptable Use Policy which, like all policies, is narrower than the absolute outer bounds of statutory limitations.

DoD is now trying to strongarm Anthropic into changing the deal that they already signed!

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