it runs though on the phones of everyone who have you in contacts and in conversation history, so they are only missing one piece of puzzle in the middle

.. maybe not, but that nokia 1100 with tons of backdoors isn't getting any updates any time soon, either ..

Not necessarily - that was misdirection.

Domestic surveillance was an example of a limitation that Anthropic wanted to put on their software. But in order to enforce that limitation, Anthropic would both need to monitor DoD usage of their tools and have a kill switch. Both of these were the real sticking point and the reason why the Trump Admin was willing to make an example of Anthropic.