OpenAI CEO Defends Pentagon AI Deal Amid Internal Backlash, Seeks NATO Contracts

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OpenAI CEO Sam Altman defended the Pentagon AI deal in an internal meeting, despite employee pushback. The revised contract prohibits domestic surveillance use. Anthropic was flagged as a supply chain risk by Defense Secretary Pete Hegseth. OpenAI is also reportedly targeting NATO networks, but only for non-classified systems. AI and crypto news remain closely tied to on-chain developments as major firms navigate national security concerns.

According to 1M AI News, OpenAI CEO Sam Altman defended the Pentagon’s classified network AI deployment agreement during an all-hands meeting on Tuesday. The agreement, announced last Friday, came just hours after Defense Secretary Pete Hegseth labeled competitor Anthropic as a supply chain risk—a measure rarely applied to U.S.-based companies. Following its announcement, the deal faced widespread criticism from OpenAI employees and Silicon Valley AI researchers, who argued that OpenAI had accepted terms allowing AI to be used for “all lawful purposes,” effectively conceding to the Pentagon. In response to the backlash, OpenAI revised the agreement to explicitly prohibit use for domestic surveillance.

According to remarks seen by The Wall Street Journal, Altman said he has no regrets about the deal but acknowledged that the announcement was rushed, appearing “opportunistic” and “uncooperative with the industry.” He said, “After working so hard to do the right thing, being completely crushed on a personal level—I know you’re going through this too, and I’m truly sorry that you have to bear it—it’s been incredibly painful.”

Altman also stated at the event that OpenAI is seeking to deploy AI across all of NATO’s classified networks, but the company’s spokesperson later clarified that Altman had misspoken—the opportunity pertains only to NATO’s “unclassified networks.” Altman said at the event that the government is willing to let OpenAI influence how its technology is deployed, expressing his desire for the company to “have a seat at the table,” and added that “the powerful U.S. military has been a tremendous benefit to all of humanity over the past 250 years.”

According to The Wall Street Journal, the military strike against Iran last weekend also involved Anthropic’s Claude model in its planning; on Tuesday, Deputy Under Secretary of Defense for Research and Engineering Emil Michael stated at an a16z event that AI companies’ model constitutions “cannot supersede the U.S. command and control system.” During the backlash, Anthropic’s Claude surpassed ChatGPT for the first time as the most popular app on the Apple App Store. (The Wall Street Journal)

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