If the Department of Defense prevails in its conflict with Anthropic, it could lead US allies to view American tech companies with the same suspicion as Chinese tech companies.

The US military can legally bypass Executive Order 12333 restrictions on domestic data gathering by purchasing information from commercial databases.

The US government's threat to apply coercive tools, typically used against foreign adversaries, to a domestic company like Anthropic over a contract dispute is unprecedented.

The US government's actions against Anthropic will likely make other Silicon Valley companies more hesitant to work with the US defense establishment.