I'm wondering how this plays out in practice. Does the administration decide to strongarm contractors into cutting all ties? Will that extend to someone like google who provides compute to anthropic? Will the administration just plain ignore any court ruling? (as they've shown they're ready to do recently with the tarrifs situation)

If the legal system works as intended, the blast radius isn't too big here and something Anthropic will accept even if it hurts them. Maybe they even win and get the supply chain risk designation lifted. But I have zero faith that the legal system will make a difference here. It all comes down to how far the administration wants to go in imposing it's will.

Bleak.

It does NOT extend to compute.

GCP and AWS cannot use Claude to build anything part of a DoD contract, but they do not need to deny Anthropic access to compute itself.