> OTOH, I think almost guaranteed it will be watered-down by the government. Because read expansively, it could force Microsoft and AWS to choose between stopping reselling Claude vs dropping the Pentagon as a customer.

A tweet does not have the force of law. Being designated a supply chain risk does not mean that companies who do business with the government cannot do business with Anthropic. Hegseth just has the law wrong. The government does not have the power to prevent companies from doing business with Anthropic.

The issue is, even if the Trump admin is misrepresenting what the law actually says, federal contractors may decide it is safer to comply with the administration’s reading. The risk is the administration may use their reading to reject a bid. And even if they could potentially challenge that in court and win, they may decide the cheaper and less risky option is to choose OpenAI (or whoever) instead