While I agree with the sentiment, $200 Million is really not a big contract for Anthropic when they're on $44 Billion annual revenue. It's less than half a percent.

https://www.wsj.com/tech/ai/anthropic-ai-defense-department-...

They told the US government no on using Claude for approving lethal military strikes.

China can get plenty of value from Claude without needing to use it for anything similar.

They very specifically avoided a trap where the next time the US blows up a school full of children they were very obviously going to blame Claude for it.