What people don't understand is that domestic surveillance by the government doesn't happen and isn't needed. They know it's illegal and unpopular and for over two decades they have a loophole. Since the Bush administration it's been arranged for private contractors to do the domestic surveillance on the government's behalf. Entire industries have been built around creating "business records" for no other purpose than to sell them to the government to support domestic surveillance. This is entirely legal and why the DoW has been able to get away with saying things like "domestic surveillance is illegal, we don't do that" for over two decades while simultaneously throwing a shit fit about needing "all legal uses" if their access to domestic surveillance is threatened.

There's a big difference between "the government won't use our tools for domestic surveillance" (DoW/DoD/OpenAI/etc) and "we won't allow anyone to use our tools to support domestic surveillance by the government" (Anthropic)

Hegseth and the current Trump admin are completely incompetent in execution of just about everything but competent administrations (of both parties) have been playing this game for a long time and it's already a lost cause.