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.
replyFedRAMP 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.
replyThere's a lot of backchanneling going on between Emil and Dario because everyone's in the same circles but it's all for naught.
In Hegseth's voice - No longer politically correct "DoD". It's precisely violent DoW now.
replyThe DoD has been rather consistent that they will decide what to do with a product sold to them, not some random vendor. There is nothing extra to "price in".
replyThe "extra" is that the government is now attempting to unilaterally renegotiate contracts, and if the contractor disagrees, not only do they terminate the agreement but they restrict how other companies can work with you.
replyApparently that's not 100% true. The DoD contractor itself can still use Anthropic's technology, just not on U.S. military contract projects.
replyIf you were a contractor to DoD (no way I'm calling them DoW) would you take the risk of doing business with a company that has been labeled a supply chain risk by your main customer?
replyThey will stop just to be sure no boundaries are crossed.
replyThe issue is the onus is on the contractor to prove that Anthropic technology has not tainted US government contracted projects - this is a herculean task verging on impossible. Additionally, most contracts will mandate SLAs around removing BOM risks.
replyI’d like a lawyer to give some input. If you have a company that deals with the military does this chain down to not being allowed to use Claude or not?
replyIANAL and this is my understanding of the situation (I can be completely wrong) but yes, any company that deals with military cant use Claude (anthropic)
replyIn fact adding onto it, IIRC this is the reason why google and amazon have to divest essentially from Anthropic if they want Govt. contracts
Hope this helps though a lawyer's input will definitely be more credible. So its good for them to respond as well.