And the fact is that he had to reverse that position because it was not supportable by the statutory law he was trying to use. So the DoW policy changed.
I'm a big fan of checking the facts, which is why I encourage you to stay current on the discussion. Companies that do defense work are already familiar with the need to setup corporate structures to ensure that the blast radius of changes to FAR, DFARS, statutory requirements etc. don't reach the main corporate entity.
The thing that is novel here is that requirements traditionally focused on protecting for undue linkage with potentially-hostile foreign sources are being applied against Anthropic. But it's also novel that Anthropic is trying to apply conditions of use restrictions through its contract with the military.
I don't personally feel that's novel enough to warrant a ban across the whole supply chain, but that's been the net effect of quite a few other FAR and DFARS restrictions over the years, which have caused companies to either exit the defense space or avoid selling into it in the first place.
Please check your facts. Hegseth originally stated [1] that it would apply to ALL usage by companies that work with the military.
[1] https://www.cbsnews.com/news/hegseth-declares-anthropic-supp...