this post was submitted on 28 Feb 2026
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This absolutely did not kill them. I've been dealing with federal procurement, including ATOs for DoD, for years, and 99% of companies never even remotely interact with it. Yes, there's a large number that do, especially among Fortune 500s and up, but the actual percentage of companies who have military contracts is tiny. This was meant to intimidate them into compliance, but this doesn't make them any less viable than AIaaS already is or isn't.
The order is actually much narrow than that; it only applies to companies who directly have contracts with the military.
Anthropic software just can't be used to process federal data, but if e.g. Lockheed uses ADP to process internal payroll, and ADP uses a third-party developer to build some software, and that developer uses Claude, that doesn't snake it's way back up the chain and invalidate Lockheed's contracts.