Its one thing to say "we cannot abide by these terms, so let's part ways", and its another entirely to respond this drastically. The Trump administration will look back on this decision as the most consequential in their efforts to win the 2026 midterms and Republican efforts in 2028. This is a $400B+ American company that has significant partial ownership from Amazon, Google, and other private equity sources; they just made serious enemies in SV, many of whom supported Trump in his 2024 election victory.

This is a pimple on the arse of said consequence. It's one tiny thing in a chain of many bigger things.

It's magnified because it's right now, but this won't affect midterm results barely a whisker compared to many other daily headlines.

There are no serious enemies to this administration in SV and I can't see this changing that. SV has bent the knee exactly like Anthropic didn't. They're not going to stand up because of this, they've proven they don't have those muscles.

OTOH it could amplify their base: “Big Tech refusing to work with us on National Security matters!” The base will never hear what/where the red line was drawn, just that Some Company in California (liberal/bad) is being Woke and Political.