(Bloomberg) — OpenAI (OPAI.PVT) has reached an agreement to deploy its artificial intelligence models within the Defense Department’s classified network, following a significant fallout between its rival Anthropic PBC (ANTH.PVT) and the Pentagon over concerns related to surveillance and autonomous weaponry. The move underscores a pivotal shift in AI partnerships as defense agencies navigate the complexities of advanced technology.
OpenAI Chief Executive Officer Sam Altman announced the agreement late Friday, stating that it aligns with the company’s principles prohibiting “domestic mass surveillance and human responsibility for the use of force, including for autonomous weapon systems.” Altman emphasized that OpenAI has implemented safeguards to ensure the responsible operation of its models within the Defense Department, sharing details via a post on the social media platform X.
While OpenAI declined to confirm whether its services would supplant Anthropic’s previous contributions, the Defense Department did not respond to an inquiry about the matter late Friday. Earlier that day, the Pentagon had classified Anthropic as a supply-chain risk, a designation that could severely impact the company’s business and escalate ongoing tensions regarding the safety measures surrounding its technology.
Anthropic, which has maintained that its products must not be used for surveillance of Americans or for conducting strikes without human oversight, reiterated its stance on Friday, asserting that “no amount of intimidation or punishment from the Department of War will change our position.” The company has gained significant attention recently as it seeks to broaden its AI applications across sectors such as healthcare, finance, and law, triggering sell-offs in various industries as investors express concerns over potential disruptions.
The Pentagon had presented terms to Anthropic earlier in the week that included some of the company’s proposed language on surveillance and autonomy. However, according to a source familiar with the discussions, Anthropic believed the terms fell short of adequately protecting against potential future compromises by the Pentagon.
OpenAI’s agreement with the Pentagon could exacerbate tensions between the Trump administration and Anthropic, which has garnered notable support from Silicon Valley for its principled stance on AI ethics. Tech workers have rallied behind Anthropic, urging major companies like Amazon.com Inc. and Microsoft Corp. to adopt similar positions.
In his post, Altman urged the Defense Department to extend the same ethical considerations to all AI companies, asserting that these principles should be universally accepted within the industry. Defense Secretary Pete Hegseth outlined a six-month timeline for Anthropic to transition its AI services to another provider, declaring, “America’s warfighters will never be held hostage by the ideological whims of Big Tech.” This statement was made shortly after President Trump announced that federal agencies would cease their partnerships with Anthropic.
Dario Amodei, CEO of Anthropic, who previously worked at OpenAI before departing in 2020 amid concerns over the firm’s prioritization of commercialization over safety, remarked on the intensifying dynamics between the two companies. Notably, OpenAI transitioned from a nonprofit to a for-profit entity last year and has since relaxed its initial restrictions on military applications, allowing such uses starting in 2024. The company also altered its mission statement, removing the term “safely” and instead focusing on ensuring that artificial general intelligence benefits all of humanity.
Both OpenAI and Anthropic are increasingly shifting their focus toward profitability as they pursue initial public offerings, capitalizing on heightened investor enthusiasm for AI technologies. Earlier on Friday, OpenAI announced it had secured $110 billion in funding, valuing the startup at an impressive $730 billion and marking its most significant funding round to date. This capital will support OpenAI’s ambitious efforts to enhance its computing capabilities and recruit top talent for AI development. Anthropic raised $30 billion in a funding round earlier this month from some of OpenAI’s investors.
Public clashes between Amodei and Altman have marked their relationship over the years, with the two notably standing side-by-side during an AI summit in New Delhi earlier this month, yet refraining from the customary gesture of holding hands, a symbol of camaraderie, while other participants did so.
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