> What's the problem?

Think. The problem is that being branded a "supply chain risk" prohibits vast chunks of the US corporate landscape from doing business with Anthropic.

The problem is that the government is attempting to destroy a company rather than simply terminate their contract.

Isn't it a literal supply chain risk, though?

They want their products to not be used for some purposes. That's fine, that is their right. But that doesn't just stop at direct purchases. If the US buys from a defense contractor who bought from abthropic, that really isn't that different from buying direct. The moral hazard is still there and the risk that anthropic will try to prevent their product from being used in that fashion is still there.

I think anthropic wants their cake and to eat it too. You can't take a principled stand against something and then be shocked the thing you are taking a principled stand against might think you are a risk.