"When you're regulating by contract, it's basically creating a huge amount of power in the agency that's negotiated that contract and then becomes effectively the de facto policy of the administration."
"When other agencies don't like that decision, that's when you start to see these carve outs because they don't want to be bound by what was effectively a failed negotiation by Pentagon."
The White House is reconsidering its stance on Anthropic following months of conflict and legal issues with the Pentagon. The Trump administration initially favored a hands-off approach to AI, but increasing model capabilities have prompted a shift towards regulation. Tensions escalated earlier this year when discussions about Anthropic's AI use in classified settings collapsed, leading to lawsuits and a supply chain risk designation. Despite these challenges, the government recognized the importance of Anthropic's technology and began to mend relations as agencies tested its advanced models.
Read at Axios
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