OpenAI Secures AI Agreement with Department of Defense Following Anthropic Fallout
By Cade Metz, Reporting from San Francisco | Published February 27, 2026; Updated February 28, 2026
OpenAI, the creator of the widely used AI language model ChatGPT, announced on Friday that it had successfully reached an agreement with the U.S. Department of Defense (DoD) to supply its artificial intelligence technology for use on classified systems. This development emerged just hours after President Donald Trump ordered federal agencies to halt the use of AI technologies produced by Anthropic, a competitor to OpenAI.
Details of the Agreement
Under the terms of the new deal, OpenAI has granted the Pentagon permission to employ its AI systems for any lawful purpose—a stipulation that the DoD considered essential. In response, OpenAI emphasized that it had incorporated specific technical safeguards, or “guardrails,” to ensure that its AI technologies operate in accordance with the company’s safety principles.
Sam Altman, OpenAI’s Chief Executive, expressed optimism about the collaboration in a social media statement, noting, “In all of our interactions, the DoW displayed a deep respect for safety and a desire to partner to achieve the best possible outcome.” Altman’s reference to “DoW” aligns with the current administration’s preference for calling the Department of Defense the Department of War. The DoD has not immediately commented on the new agreement.
The Anthropic Dispute
The timing of OpenAI’s agreement came amid a high-profile clash between the Pentagon and Anthropic over the scope and restrictions on the use of AI technology in defense systems. For weeks, Anthropic and the Defense Department had been negotiating a $200 million contract.
A central point of contention was the DoD’s requirement that it be allowed to use Anthropic’s AI systems for all lawful purposes. Anthropic resisted this demand, seeking contractual terms that would prevent its AI technology from being used in domestic surveillance operations or in autonomous lethal weaponry.
The Pentagon argued that private contractors could not unilaterally decide the use cases of their technologies within national security applications. As these discussions reached an impasse, tensions spilled into the public domain.
Government Response and Consequences for Anthropic
The disagreement culminated on Friday when Anthropic failed to meet the Pentagon’s 5:01 p.m. deadline for agreement on terms. Following this, Defense Secretary Pete Hegseth designated Anthropic as a “supply-chain risk to national security." This designation effectively excludes the AI company from conducting business with the U.S. government.
President Trump also voiced criticism, describing Anthropic as a “radical Left AI company,” and supporting the government’s decision to sever ties.
Implications for OpenAI and Defense Technology
This deal marks a significant win for OpenAI, which navigated safety concerns and government requirements to position itself as a trustworthy AI provider to the U.S. military. It demonstrates the Pentagon’s preference for AI partners willing to operate within frameworks that allow broad yet controlled use of their technologies in defense settings.
As the rivalry between AI firms intensifies, this development illustrates the complex balance of innovation, safety, political considerations, and national security interests shaping the future of AI deployment in government. The agreement sets a precedent for how AI providers may engage with federal agencies amid rising scrutiny and regulatory challenges.
For continued updates on this and related stories, stay tuned to The New York Times Technology section.
