OpenAI Strikes AI Deal with Defense Dept. After Anthropic Clash

The agreement allows OpenAI to provide AI technologies for classified systems, while installing safeguards against domestic surveillance and autonomous weapons.

Mar. 3, 2026 at 1:15am by Ben Kaplan

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OpenAI, the maker of ChatGPT, has reached an agreement with the Pentagon to provide its artificial intelligence technologies for classified systems. This comes just hours after President Trump ordered federal agencies to stop using AI technology made by rival Anthropic. Under the deal, OpenAI agreed to let the Pentagon use its AI systems for any lawful purpose, while also installing technical guardrails to ensure its technologies are not used for domestic surveillance or autonomous weapons.

Why it matters

The deal represents a business and political victory for OpenAI, as it takes advantage of its rival Anthropic's troubles with the Pentagon over the use of its AI technology. The disagreement between Anthropic and the Pentagon over the terms of a $200 million contract escalated, leading the Defense Department to designate Anthropic as a 'supply-chain risk to national security.' This effectively cut the AI company off from government business, opening the door for OpenAI to step in.

The details

OpenAI CEO Sam Altman negotiated the deal with the Defense Department, agreeing to allow the use of OpenAI's technology for all lawful purposes. Altman also secured the right to put safeguards into OpenAI's technologies to prevent them from being used in ways the company does not want. This allowed Altman to uphold safety principles around AI while still landing the Pentagon contract. The deal also includes having some OpenAI employees work alongside government personnel on classified projects to help ensure the safety of the models.

  • On Friday, March 1, 2026, OpenAI announced the agreement with the Pentagon.
  • Earlier on the same day, President Trump ordered federal agencies to stop using AI technology made by Anthropic.

The players

OpenAI

The artificial intelligence company that created ChatGPT and has now reached an agreement with the Pentagon to provide its AI technologies for classified systems.

Sam Altman

The CEO of OpenAI, who negotiated the deal with the Pentagon and secured the right to install safeguards on OpenAI's technologies to prevent their use for domestic surveillance or autonomous weapons.

Anthropic

A rival AI company that had been in negotiations with the Pentagon over a $200 million contract, but failed to reach an agreement on the terms for using Anthropic's AI technology.

Dario Amodei

The CEO of Anthropic, who has a long-standing rivalry with OpenAI's Sam Altman.

Department of War (DoW)

The administration's preferred name for the Defense Department, with which OpenAI has now reached an agreement.

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What they’re saying

“In all of our interactions, the DoW displayed a deep respect for safety and a desire to partner to achieve the best possible outcome.”

— Sam Altman, CEO, OpenAI

“They're trying to divide each company with fear that the other will give in. That strategy only works if none of us know where the others stand. This letter serves to create shared understanding and solidarity in the face of this pressure from the Department of War.”

— OpenAI employees

What’s next

It may take time for OpenAI's technology to be used by the Pentagon, as the company is not yet approved for classified work in part because its technologies are not available from Amazon's cloud computing services, which is how the government often accesses classified systems. This could change after OpenAI signed a partnership with Amazon on Friday, with Amazon pouring $50 billion into the AI startup.

The takeaway

This deal highlights the ongoing tensions between AI companies and the government over the use of advanced technologies, particularly around issues of privacy, surveillance, and autonomous weapons. OpenAI's ability to navigate these challenges and secure a contract with the Pentagon, while also installing safeguards, demonstrates the company's strategic positioning and willingness to compromise to maintain its business opportunities.