OpenAI Is Now Pentagon's Top AI Partner
After the U.S. government banned competitor Anthropic, OpenAI is now the Pentagon's primary AI partner. The company is providing models for military surveillance and operational planning, claiming it has "technical safeguards" against misuse. However, in a complex twist, recent U.S. strikes in Iran reportedly still used Anthropic's AI, highlighting the messy reality of tech deployment in wartime.
The dispute with Anthropic escalated when the company refused to remove safeguards preventing its AI, Claude, from being used for mass surveillance of Americans or in fully autonomous weapons systems without human intervention. This refusal led to a standoff with the Pentagon, which had demanded the ability to use the technology for "all lawful purposes." In response to the standoff, then-President Donald Trump ordered all federal agencies to cease using Anthropic's technology, and Defense Secretary Pete Hegseth designated the company a "supply chain risk to national security," a label typically reserved for foreign adversaries. Anthropic's CEO, Dario Amodei, described the government's actions as "punitive and inappropriate." OpenAI's agreement with the Pentagon includes similar "red lines" against mass surveillance and autonomous weapons. However, OpenAI accepted the "all lawful use" clause that Anthropic rejected, stating that their technical safeguards and cloud-only deployment architecture provide sufficient protection against misuse. This partnership is part of a broader, well-funded push by the Department of Defense to integrate artificial intelligence. The Pentagon's AI budget saw a significant increase to $13.4 billion for fiscal year 2026. Both OpenAI and Anthropic were part of a larger contract award, with each company, along with Google and xAI, initially receiving contracts worth up to $200 million. The use of AI in military operations is not new; Project Maven, initiated in 2017, uses AI to analyze data from drones and other sources to identify potential targets for human analysts. This project has involved several major tech companies over the years, including Google, which withdrew in 2018 after employee protests, and Palantir. OpenAI had previously removed a ban on "military and warfare" applications from its usage policy in January 2024, a move that signaled a growing willingness to work with defense agencies. The company stated the policy was updated to provide clarity and allow for national security use cases that align with their mission.