OpenAI Reveals Pentagon Deal Details

The deal materializes after the Trump administration directed all federal agencies to cease using technology from rival AI firm Anthropic. This decision followed Anthropic's refusal to remove safeguards that prevent its AI, Claude, from being used for mass domestic surveillance or to power fully autonomous weapons. The administration had given Anthropic a deadline to comply or face termination of its $200 million contract. In an escalation, Defense Secretary Pete Hegseth designated Anthropic a "supply chain risk to national security," a label historically applied to foreign adversaries. This designation could prevent any company that does business with the U.S. military from also working with Anthropic. Anthropic has stated it will challenge the designation in court, calling it "legally unsound." OpenAI's agreement with the Pentagon includes prohibitions on using its technology for mass domestic surveillance and autonomous weapons, the very "red lines" that were at the center of the dispute with Anthropic. Sam Altman stated that the Department of Defense agrees with these principles and that they are reflected in the contract. The safeguards in the OpenAI deal are not just policy-based but include technical and operational controls. The agreement stipulates a cloud-only deployment, which gives OpenAI ongoing control over its safety features, and includes the involvement of cleared OpenAI personnel to oversee the AI's use. The contract is reportedly valued at up to $200 million. This move signals a significant policy shift for OpenAI, which until early 2024 had a policy that banned military applications of its technology. Sam Altman has publicly stated that he believes the government's move to designate Anthropic as a supply chain risk is a "very bad decision" and a "scary precedent." He indicated that OpenAI moved quickly to secure its own deal in an attempt to "de-escalate" the tensions between the government and the AI industry.