Altman Eyes Pentagon Deal After Trump Axed Anthropic

Sam Altman’s OpenAI is reportedly stepping in where Anthropic faltered, potentially securing a deal with the U.S. Department of War after Anthropic’s contracts faced termination. This move highlights the complex interplay between AI companies and government interests, particularly concerning ethical AI deployment in defense.

Key Points

  • OpenAI is reportedly negotiating a deal with the Department of War to provide its AI models and tools.
  • The potential agreement follows the Trump administration’s decision to end contracts with Anthropic.
  • The OpenAI deal reportedly includes similar restrictions to those requested by Anthropic, such as prohibitions against domestic surveillance and autonomous weapons.
  • The Department of War expressed support for the deal, underscoring the need for reliable AI partners.

OpenAI’s Potential Agreement with the Department of War

OpenAI CEO Sam Altman informed employees at an all-hands meeting on Friday that the company is in talks for a potential agreement with the U.S. Department of War. The deal aims to integrate OpenAI’s AI models and tools into the military’s classified systems. According to a source present at the meeting and a summary reviewed by Fortune, the contract is not yet finalized.

Sasha Baker, head of national security policy at OpenAI, and Katrina Mulligan, who leads national security for OpenAI for Government, also addressed the meeting. They provided further details on the potential collaboration.

The Anthropic Fallout

This potential deal emerges after a public dispute between the Department of War and Anthropic, an OpenAI competitor, which culminated in the apparent termination of Anthropic’s government contracts. President Trump announced that all federal agencies would cease using Anthropic’s technology, citing a lack of need and unwillingness to conduct further business with the company. The decision mandates a six-month phase-out period for agencies currently using Anthropic’s Claude models.

Reportedly, the relationship between Anthropic and the government deteriorated because Anthropic CEO and cofounder Dario Amodei had offended Department of War leadership. This included publishing blog posts that the department found objectionable, according to sources.

Guardrails and Restrictions

Altman indicated that the potential agreement with the Pentagon would include similar restrictions that Anthropic had sought. These restrictions prohibit the use of AI for domestic surveillance and autonomous offensive weapons. “Tonight, we reached an agreement with the Department of War to deploy our models in their classified network,” Altman wrote in a post on X.

The Pentagon reportedly agreed to these conditions shortly after announcing that it would sever ties with Anthropic. While the contract with OpenAI is not yet signed, it signals a potential resolution to the impasse over AI use in defense.

Department of War’s Perspective

Defense Secretary Pete Hegseth reposted Altman’s announcement on X, signaling support for the OpenAI agreement. Under Secretary Emil Michael, who is in charge of technology at the Pentagon, stated, “When it comes to matters of life and death for our warfighters, having a reliable and steady partner that engages in good faith makes all the difference as we enter into the AI Age”.

The Department of War’s quick embrace of OpenAI, following the rift with Anthropic, highlights the urgency with which the government is pursuing AI integration into its operations. Industry analysts note that this situation underscores the critical importance of reliable partnerships in the AI sector.

Frequently Asked Questions

Why did the government stop working with Anthropic?
The Trump administration decided to cease working with Anthropic due to disagreements over the use of AI, specifically regarding restrictions the company requested concerning autonomous weapons and mass surveillance. Anthropic CEO Dario Amodei also reportedly offended Department of War leadership, further straining the relationship.
What restrictions will be placed on OpenAI’s use of AI by the Department of War?
The agreement between OpenAI and the Department of War is expected to include prohibitions against using AI for domestic surveillance and autonomous offensive weapons. These are similar to the restrictions that Anthropic had requested, indicating a common ground on ethical AI usage.
How quickly did OpenAI and the Department of War reach an agreement after the Anthropic fallout?
OpenAI and the Department of War reached an agreement in principle very quickly—hours after the Trump administration announced it would end its relationship with Anthropic. This rapid development underscores the urgency and importance the Department of War places on securing AI partnerships.
What was the Department of War’s reaction to the OpenAI deal?
The Department of War showed strong support for the potential deal with OpenAI. Defense Secretary Pete Hegseth and Under Secretary Emil Michael both publicly endorsed the agreement, emphasizing the importance of a reliable partner as the military integrates AI technologies.

What’s Next

The immediate next step is the formal signing of the contract between OpenAI and the Department of War. It will also be important to watch how OpenAI integrates its AI models into the Department of War’s classified systems. The industry will also be watching for how other AI companies respond to this deal, and whether they will be willing to compromise on ethical AI usage in order to secure government contracts.

Why It Matters

  • Ethical AI in Defense: The inclusion of restrictions against domestic surveillance and autonomous weapons in the OpenAI deal signals a continuing debate about the ethical boundaries of AI use in military applications.
  • Geopolitical Implications: This deal could accelerate the integration of AI into the U.S. military, potentially impacting the balance of power and prompting other nations to pursue similar strategies.
  • Industry Dynamics: OpenAI’s willingness to work with the Department of War, under certain conditions, sets a precedent for other AI companies and could influence future collaborations between tech and government.
  • Supply Chain Risks: The Department of War designating Anthropic a “supply chain risk” after the disagreement over ethical AI usage highlights that the consequences of disagreement on ethical principles could significantly harm relationships.

Research Sources

Original Source: fortune.com