The government needs broad discretion when dealing with matters of national security, but if I were a company doing business with or thinking about doing business with the federal government, I would be deeply troubled by today’s decision.
Rarely have I seen such widespread agreement across the procurement community about how badly the Pentagon handled this.
They exploited a legitimate national security tool during a failed business negotiation, and the D.C. Circuit just blessed it.
Apparently, if the government disagrees with the terms under which you sell your product, it is not enough for the government to just not buy it. They can take a sledgehammer to your company, and a court will okay it because “national security.”
This means Anthropic would remain a national security risk and be blacklisted from military contracts. I'm not sure how you would even untangle Mythos from US intelligence agencies at this point. Anthropic 'remains confident in its position and is considering its options.'