Key Highlights
- NATO discussions involve deploying OpenAI’s technology on unclassified networks, following Sam Altman’s initial misstatement about classified access
- The company recently completed an agreement to integrate AI systems within the Pentagon’s classified infrastructure
- Federal agencies received presidential orders to terminate Anthropic partnerships, affecting contracts worth over $200 million
- The rival AI company faced removal following its refusal to grant unrestricted military access to its systems
- Several government departments—State, Treasury, and HHS among them—are transitioning their AI operations from Anthropic to OpenAI
OpenAI continues pursuing partnerships with NATO while standing behind its Pentagon collaboration, as competitors like Anthropic face elimination from government contracts.
During a company meeting on Tuesday, OpenAI CEO Sam Altman addressed staff members regarding the Pentagon partnership, acknowledging the announcement appeared rushed and poorly timed.
“We were genuinely trying to de-escalate things and avoid a much worse outcome, but I think it just looked opportunistic and sloppy,” Altman said in a memo posted on X.
The previous week, OpenAI finalized arrangements with the U.S. Department of Defense for deploying its AI technology across classified government infrastructure. This agreement materialized shortly after President Trump directed federal agencies to terminate their use of Anthropic’s AI systems.
The administration voided contracts with Anthropic totaling more than $200 million. Defense Secretary Pete Hegseth characterized Anthropic as representing a national security “supply chain risk.”
The Reason Behind Anthropic’s Contract Terminations
Anthropic CEO Dario Amodei explained his company faced removal after declining to relax limitations on military applications of its AI technology. The firm had rebuffed requirements for unrestricted model access.
The company had specifically maintained opposition to deploying its AI for widespread domestic surveillance operations or fully autonomous weaponry. Pentagon officials stated they held no interest in such applications, while insisting all lawful AI uses remain permissible.
OpenAI’s revised Pentagon arrangement specifies its AI “shall not be intentionally used for domestic surveillance of U.S. persons and nationals.” The NSA additionally confirmed intelligence agencies would not employ AI services under this agreement.
Altman expressed no regrets about partnering with the Defense Department, though he wished the announcement timing had been different. He acknowledged to staff that OpenAI appeared to capitalize on Anthropic’s situation.
“To try so hard to do the right thing and get so absolutely personally crushed for it is really painful,” Altman said at the staff meeting.
NATO Partnership Discussions
In parallel developments, OpenAI has entered negotiations to implement its technology across NATO’s unclassified network infrastructure. The military alliance comprises 32 member nations.
Altman initially informed staff about pursuing deployment across all NATO classified networks. A company representative subsequently issued a correction, clarifying the contract opportunity pertains exclusively to unclassified networks.
NATO officials have yet to provide commentary on the matter.
Federal departments including State, Treasury, and Health and Human Services are terminating their Anthropic AI products following the White House directive.
Amazon and Google provide backing for Anthropic. Microsoft and Amazon are among the investors supporting OpenAI.
OpenAI has publicly stated its position that Anthropic should avoid classification as a “supply chain risk” by federal authorities.
Altman noted the government offered OpenAI influence over technology deployment methods. “We have built a technology that is going to be the fundamentally most important tool for the government and governments around the world,” he said.
