TLDR
- OpenAI is in talks to deploy its AI on NATO’s unclassified networks, after CEO Sam Altman misspoke about classified access
- OpenAI last week signed a deal to deploy AI in the Pentagon’s classified network
- President Trump ordered federal agencies to drop Anthropic, canceling over $200M in contracts
- Anthropic was removed after refusing the Pentagon’s demand for unrestricted AI access
- Multiple U.S. agencies including State, Treasury, and HHS are now switching from Anthropic to OpenAI
OpenAI is in talks to work with NATO and has defended its new Pentagon deal, as the U.S. government pushes rivals like Anthropic out of federal contracts.
OpenAI CEO Sam Altman told staff in a company meeting on Tuesday that he stood by the Pentagon deal, but admitted the announcement was rushed and looked “opportunistic.”
“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.
Last week, OpenAI signed an agreement with the U.S. Department of Defense to deploy its AI models within a classified government network. The deal came quickly after President Trump ordered federal agencies to stop using Anthropic’s AI tools.
The White House canceled more than $200 million in Anthropic contracts. Defense Secretary Pete Hegseth called Anthropic a national security “supply chain risk.”
Why Anthropic Lost Its Government Contracts
Anthropic CEO Dario Amodei said his company was removed because it refused to loosen restrictions on military use of its AI. The company had rejected demands for unrestricted access to its models.
Anthropic had specifically opposed using its AI for mass domestic surveillance or fully autonomous weapons. The Pentagon said it had no interest in those uses, but wanted all lawful uses of AI to be permitted.
OpenAI’s updated Pentagon agreement states its AI “shall not be intentionally used for domestic surveillance of U.S. persons and nationals.” The NSA also confirmed AI services would not be used by intelligence agencies under the deal.
Altman said he does not regret signing with the Defense Department, but wished he had not announced it so fast. He told staff it looked like OpenAI took advantage of Anthropic’s removal.
“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.
OpenAI’s NATO Talks
Separately, OpenAI is now in discussions to deploy its technology on NATO’s unclassified networks. NATO is a 32-member military alliance.
Altman had initially told staff OpenAI was looking to deploy on all NATO classified networks. A company spokesperson later corrected that, saying the contract opportunity was for unclassified networks only.
NATO did not respond to a request for comment.
U.S. agencies including the State Department, Treasury, and the Department of Health and Human Services are also dropping Anthropic’s AI products under the new White House order.
Anthropic is backed by Amazon and Google. OpenAI is backed by Microsoft and Amazon, among others.
OpenAI publicly stated it does not believe Anthropic should be labeled a “supply chain risk” by the U.S. government.
Altman said the government was willing to give OpenAI influence over how its technology is deployed. “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.
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