OpenAI Strikes Defense Department Deal After Anthropic Cutoff

The Pentagon moves to designate Anthropic a supply chain risk amid dispute over AI use

Feb. 28, 2026 at 8:22am

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OpenAI has reached an agreement with the Department of Defense to deploy its AI models on the Pentagon's classified network, just hours after the government severed ties with rival AI company Anthropic over concerns about how the technology would be used in surveillance and autonomous weapons.

Why it matters

This deal highlights the growing influence and strategic importance of AI technology, as the U.S. government seeks to harness advanced AI capabilities for national security purposes. The fallout with Anthropic also underscores the potential tensions between AI companies and the government over the ethical use of the technology.

The details

OpenAI CEO Sam Altman announced the deal with the Department of Defense late on Friday. The news came just hours after President Donald Trump ordered federal agencies to stop using Anthropic's technology, and Defense Secretary Pete Hegseth said the Pentagon would be designating Anthropic as a "supply-chain risk to national security." Anthropic said it will challenge the supply chain risk designation in court, insisting that "no amount of intimidation or punishment from the Department of War will change our position on mass domestic surveillance or fully autonomous weapons."

  • On Friday, President Donald Trump ordered federal agencies to stop using Anthropic's technology.
  • Late on Friday, OpenAI CEO Sam Altman announced the deal with the Department of Defense.

The players

OpenAI

An artificial intelligence research company that has developed advanced language models and other AI technologies.

Department of Defense

The executive department of the U.S. federal government responsible for national security and the U.S. Armed Forces.

Anthropic

An AI research company that has developed advanced language models and other AI technologies, and has expressed concerns about the use of its technology in surveillance and autonomous weapons.

Sam Altman

The CEO of OpenAI.

Pete Hegseth

The U.S. Secretary of Defense.

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What they’re saying

“Tonight, we reached an agreement with the Department of War to deploy our models in their classified network.”

— Sam Altman, CEO, OpenAI (X)

“Effective immediately, no contractor, supplier, or partner that does business with the United States military may conduct any commercial activity with Anthropic.”

— Pete Hegseth, Secretary of Defense (X)

“We will challenge any supply chain risk designation in court. No amount of intimidation or punishment from the Department of War will change our position on mass domestic surveillance or fully autonomous weapons.”

— Anthropic (Anthropic statement)

What’s next

The judge in the case will decide on whether to allow Anthropic's challenge to the Pentagon's supply chain risk designation.

The takeaway

This deal highlights the growing strategic importance of AI technology, as the U.S. government seeks to harness advanced AI capabilities for national security purposes. However, the fallout with Anthropic underscores the potential tensions between AI companies and the government over the ethical use of the technology, which could have far-reaching implications for the future of AI development and deployment.