Pentagon's OpenAI Deal Draws Scrutiny
OpenAI CEO Sam Altman admitted the company's recent Pentagon deal "looked opportunistic and sloppy." Meanwhile, tech workers are urging the DOD to withdraw a "supply-chain risk" label from rival Anthropic, which effectively banned it from federal contracts and cleared the way for OpenAI.
The dispute began when the Pentagon demanded Anthropic allow its AI to be used for "all lawful purposes," a change from their previous agreement. Anthropic refused to remove two key safeguards: prohibitions on its AI being used for mass domestic surveillance of Americans and for fully autonomous weapons systems that can make kill decisions without human oversight. In response, Defense Secretary Pete Hegseth designated Anthropic a "supply chain risk to National Security" on February 27, 2026. This was followed by a directive from President Donald Trump for all federal agencies to phase out Anthropic's technology over a six-month period. The "supply chain risk" label is a designation historically reserved for foreign adversaries, not American tech companies. Hours after the directive against Anthropic, OpenAI announced it had secured its own deal with the Pentagon to deploy AI models on classified networks. OpenAI's agreement reportedly includes similar restrictions to what Anthropic had requested, prohibiting domestic mass surveillance and requiring human responsibility for the use of force. Sam Altman acknowledged the deal was "rushed" in what he called an attempt to "de-escalate the situation." Following backlash, OpenAI amended the contract to add more explicit language, including a ban on the intentional surveillance of U.S. persons and a clause preventing intelligence agencies like the NSA from using its tools without a new, separate agreement. The actions against Anthropic have been called "retaliatory and punitive" by its CEO Dario Amodei, and the company has vowed to challenge the designation in court. The move could force any company that contracts with the U.S. military to sever its ties with Anthropic, effectively isolating it from the defense industry. Hundreds of tech workers from companies including OpenAI, Google, Slack, and Salesforce have signed an open letter to the Pentagon and Congress. The letter calls the "supply chain risk" designation a "dangerous precedent" and urges the government to withdraw it.
