AI – OpenAI Secures Pentagon Deal Amid Anthropic Ban
AI – OpenAI has reached an agreement with the US Department of Defense to deploy its artificial intelligence models within the Pentagon’s classified systems, the company confirmed Friday. The announcement came just hours after President Donald Trump ordered federal agencies to halt all use of technology developed by rival firm Anthropic, escalating tensions between Washington and segments of the AI industry.
White House Moves Against Anthropic
The dispute began when the administration directed government departments to immediately discontinue the use of Anthropic’s AI systems. President Trump described the San Francisco-based startup as a national security concern after it declined to permit unrestricted military application of its Claude models.
In a statement posted on his Truth Social platform, Trump instructed every federal agency to cease engagement with the company. He further warned that failure to cooperate during the phase-out period could lead to civil and criminal consequences.
The Pentagon had set a late Friday deadline for Anthropic to comply with its terms, reportedly threatening to invoke the Defense Production Act if the company refused. The law, originally enacted during the Cold War and used most recently during the COVID-19 pandemic, gives the federal government authority to compel private industry to support national defense priorities.
OpenAI’s Agreement Includes Safeguards
Soon after the administration’s directive, OpenAI chief executive Sam Altman disclosed that his company had finalized a contract with the Pentagon. According to Altman, the deal incorporates “technical safeguards” aligned with OpenAI’s internal safety standards.
Altman emphasized that two core principles guided the arrangement: a prohibition on domestic mass surveillance and a requirement that humans remain responsible for decisions involving the use of force, including in systems with autonomous capabilities. He said those conditions were formally embedded in the agreement with the Department of Defense.
The Pentagon did not immediately respond to requests for comment regarding the details of the contract.
Anthropic Vows Legal Action
Anthropic strongly objected to the government’s demands, arguing that it would not allow its technology to be used for widespread domestic monitoring or fully autonomous weapons systems. In a lengthy public statement, the company said it intended to challenge any designation labeling it a supply chain risk — a classification typically applied to firms linked to foreign adversaries.
The startup maintained that it remains committed to supporting US national security but insisted that ethical limits are necessary when deploying advanced AI tools. Company representatives said that no pressure from Washington would alter their stance on mass surveillance or autonomous lethal systems.
Political Reactions Intensify
The administration’s move drew sharp political responses. Defense Secretary Pete Hegseth indicated earlier that contractors working with the US military would be barred from conducting commercial business with Anthropic, effective immediately. He criticized the company’s refusal to meet the Pentagon’s conditions.
In contrast, House Democratic leader Hakeem Jeffries defended Anthropic’s position. Calling mass surveillance of American citizens unacceptable, Jeffries praised the firm for resisting what he described as an invasion of privacy.
The dispute has also prompted reactions within the broader technology sector. Hundreds of employees from leading AI companies, including Google DeepMind and OpenAI, signed an open letter urging corporate leaders to stand united against demands they believe could compromise ethical standards. The letter argued that companies should not allow fear of losing government contracts to divide them.
Broader Implications for AI and National Security
The unfolding confrontation highlights the growing friction between federal security objectives and the ethical boundaries set by AI developers. As artificial intelligence becomes increasingly central to defense and intelligence operations, questions about oversight, accountability, and civil liberties are moving to the forefront of public debate.
With OpenAI now positioned as a key Pentagon partner under defined safeguards, and Anthropic preparing for a legal fight, the outcome of this clash could shape how AI technologies are integrated into national security frameworks in the years ahead.