> Anthropic can now no longer buy new hardware and probably will be kicked out of all cloud compute.

That's beyond the authority of the DOD. What the DOD can do is say that Anthropic's products cannot be used on defense contracts. So Boeing programmers can't use Claude on a defense contract, but they can still use it on a civilian contract. Similarly, AWS or Azure can still be used by Anthropic, but they cannot use Anthropic in their defense work.

Why not? If you have been designated a supply chain risk you may as well become one. They should move everything overseas