OpenAI Inks Pentagon Deal After Anthropic Ban
Just hours after the Trump administration banned U.S. agencies from using Anthropic's technology over AI safety concerns, OpenAI has stepped in to secure a new Pentagon contract. The deal, which Sam Altman says includes "technical safeguards," solidifies OpenAI's position as a key government AI supplier after its rival was designated a "supply chain risk."
The dispute with Anthropic centered on the company's refusal to permit unrestricted military use of its AI, specifically seeking to prohibit its technology from being used for mass surveillance of Americans or in fully autonomous weapons without human oversight. CEO Dario Amodei stated the company "cannot in good conscience accede" to the Pentagon's demands, leading to the impasse. In response, Defense Secretary Pete Hegseth designated Anthropic a "supply chain risk," a label typically applied to foreign adversaries, and barred U.S. military vendors from working with the company. President Donald Trump publicly criticized Anthropic as "Leftwing nut jobs" and ordered all federal agencies to phase out the company's technology. The OpenAI agreement, reportedly worth up to $200 million, incorporates the very safeguards Anthropic had requested. Sam Altman confirmed the deal includes prohibitions on using their AI for domestic mass surveillance and requires "human responsibility for the use of force," including for autonomous weapon systems. OpenAI's "technical safeguards" involve a cloud-only deployment, which prevents its models from being embedded directly into weapons hardware. The company will also retain control over its safety systems and have cleared OpenAI personnel involved in overseeing the technology's use in classified environments. The core of the disagreement appears to be the Pentagon's insistence on access for "all lawful purposes," which Anthropic argued could contain legal loopholes. OpenAI accepted this language, stating that their multi-layered approach of technical and contractual protections, alongside existing law, provides sufficient safeguards. This deal solidifies OpenAI's role with the U.S. government, building on existing work with clients like the Air Force Research Laboratory and NASA. The move came on the same day OpenAI announced it had closed a massive $110 billion funding round, valuing the company at $840 billion. Anthropic has stated it will challenge the "supply chain risk" designation in court, calling it an "unprecedented and legally unsound action." Meanwhile, the deal has sparked debate within the AI community, with some employees at major AI labs expressing solidarity with Anthropic's initial stance.
