Pentagon Awards OpenAI Contract Moments After Anthropic Receives National Security Ban
Following the White House directive mandating federal agencies cease operations with Anthropic due to national security risks, OpenAI secured a deal to implement its AI technology across Pentagon secure networks.
The United States Department of Defense has finalized a contract with OpenAI to integrate the company's artificial intelligence technology into secure military networks, merely hours following a White House directive that prohibited federal agencies from utilizing competing firm Anthropic's technology.
Through a post shared on X late Friday evening, Sam Altman, the chief executive officer of OpenAI, revealed the agreement, stating the organization would deliver its AI models within the Pentagon's "classified network." Altman noted that the department demonstrated "deep respect for safety" and showed readiness to operate within the parameters established by the company.
This development emerged during a week marked by significant upheaval in the artificial intelligence industry. Just hours before Altman's announcement, Pete Hegseth, the Defense Secretary, officially classified Anthropic as a "Supply-Chain Risk to National Security," a classification generally reserved for foreign adversaries. This determination mandates that defense contractors must certify they are not utilizing the company's artificial intelligence models.
At the same time, President Donald Trump issued an executive order requiring all US federal agencies to cease using Anthropic technology with immediate effect, while providing a six-month transition period for agencies currently dependent on the company's systems.
Anthropic Pentagon talks collapse over AI use limits
Anthropic had been the initial artificial intelligence laboratory to implement its models throughout the Pentagon's classified systems following a $200 million agreement executed in July. Discussions between the parties broke down when the company demanded assurances that its technology would not be deployed for autonomous weaponry or mass domestic surveillance operations. Military officials at the Defense Department maintained that the technology must remain available for any lawful military application.
Through an official statement, Anthropic expressed being "deeply saddened" by the national security designation and announced plans to contest the ruling through legal channels. The organization cautioned that this action might establish a dangerous precedent influencing how American technology companies conduct negotiations with government entities, particularly as political examination of artificial intelligence collaborations grows more intense.
According to Altman, OpenAI enforces comparable limitations and these restrictions were incorporated into the newly signed contract. He explained that the organization prohibits mass domestic surveillance operations and mandates human accountability in decisions regarding force deployment, which encompasses automated weapons platforms.
OpenAI faces backlash after deal
In the meantime, several users on the social media platform X expressed doubt and criticism. Christopher Hale, a Democratic politician in the United States, posted: "I just canceled ChatGPT and bought Claude Pro Max." He continued, "One stands up for the God-given rights of the American people. The other folds to tyrants."
A cryptocurrency community member commented: "2019 OpenAI: we will never help build weapons or surveillance tools. 2026 OpenAI: department of War, hold my classified cloud instance. Integrity arc go brrrrrrr."