28 Feb 2026

OpenAI strikes Pentagon deal with 'safeguards', as Trump dumps Anthropic

7:40 pm on 28 February 2026
The Anthropic AI logo appears on a smartphone screen and as the background on a laptop computer screen in this photo illustration in Athens, Greece, on February 24, 2026. (Photo by Nikolas Kokovlis/NurPhoto) (Photo by Nikolas Kokovlis / NurPhoto via AFP)

Anthropic insists its technology should not be used for the mass surveillance of US citizens. Photo: NIKOLAS KOKOVLIS/AFP

OpenAI says it has struck a deal for the Pentagon to use its models in the US defence agency's classified network with "safeguards", after President Donald Trump blacklisted AI rival Anthropic.

Trump ordered the government to stop using Anthropic, calling it a threat to national security, after it refused to agree to unconditional military use of its Claude models.

The firm vowed to sue over the "intimidation" in a rare public dispute between a major tech firm and the US government, insisting its technology should not be used for mass surveillance or fully autonomous weapons systems.

Hours later, OpenAI chief executive Sam Altman announced a deal with the Pentagon to use its models with similar red lines to Anthropic, using "technical safeguards" that the Department of Defense had agreed to.

"Two of our most important safety principles are prohibitions on domestic mass surveillance and human responsibility for the use of force, including for autonomous weapon systems," Altman wrote on X, adding that those principles went "into our agreement".

The Department of Defense did not immediately respond to a request for comment.

Washington had lashed out at Anthropic over its ethical concerns, saying the Pentagon operated within the law and contracted suppliers could not set terms on how their products were employed.

"I am directing EVERY Federal Agency in the United States Government to IMMEDIATELY CEASE all use of Anthropic's technology," Trump posted on his Truth Social platform. "We don't need it, we don't want it and will not do business with them again!

"Anthropic better get their act together and be helpful during this phase out period, or I will use the Full Power of the Presidency to make them comply, with major civil and criminal consequences to follow."

Court challenge

Altman told employees Thursday that he sought an agreement with the Pentagon that would include demands similar to Anthropic's and that he hoped to help broker a resolution.

"Humans should remain in the loop for high-stakes automated decisions," he wrote in a memo to employees, according to US media.

Anthropic echoed those sentiments in a statement earlier Friday (local time), saying no pushback from Washington would "change our position on mass domestic surveillance or fully autonomous weapons".

The company said it remained "ready to continue our work to support the national security of the United States".

The Anthropic AI logo appears on a smartphone screen and as the background on a laptop computer screen in this photo illustration in Athens, Greece, on February 24, 2026. (Photo by Nikolas Kokovlis/NurPhoto) (Photo by Nikolas Kokovlis / NurPhoto via AFP)

Anthropic insists its technology should not be used for the mass surveillance of US citizens. Photo: NIKOLAS KOKOVLIS/AFP

The Pentagon had said Anthropic must agree to comply with its demand by 5.01pm Friday (11.01am NZST Saturday) or face compulsion under the Defense Production Act.

Last invoked during the Covid pandemic, the Cold War-era law grants the federal government sweeping powers to direct private industry toward national security priorities.

The Pentagon also threatened to designate Anthropic a supply chain risk - a label typically reserved for companies from adversary nations, but in response, Anthropic said it would seek to overturn the ban.

"We will challenge any supply chain risk designation in court," the San Francisco-based AI startup said in a lengthy statement that outlined the dangers of the Pentagon's demands.

'Dangerous precedent'

US Defense Secretary Pete Hegseth said earlier he was directing the Pentagon to follow through on the latter threat, and that "effective immediately, no contractor, supplier, or partner that does business with the United States military may conduct any commercial activity with Anthropic".

"Anthropic delivered a master class in arrogance and betrayal, as well as a textbook case of how not to do business with the United States Government or the Pentagon," Hegseth wrote on X.

President Donald Trump, alongside top aide Stephen Miller, Secretary of State Marco Rubio, and US Secretary of Defense Pete Hegseth, speaks to reporters at his Mar-a-Lago residence in Palm Beach, Florida, on January 3, 2026.
Mandatory Credit:	Jim Watson/AFP/Getty Images via CNN Newsource

President Donald Trump, alongside (L-R) top aide Stephen Miller, Secretary of State Marco Rubio and US Secretary of Defense Pete Hegseth. Photo: Jim Watson/AFP/Getty Images via CNN Newsource

Calling Hegseth "the least qualified Secretary of Defense in our nation's history", top House Democrat Hakeem Jeffries praised what he called Anthropic's courage for pushing back "against this shocking invasion of privacy scheme".

"Mass surveillance of American citizens is unacceptable," Jeffries added.

The conflict earlier drew a show of solidarity from others in the industry, with hundreds of employees from AI giants Google DeepMind and OpenAI urging their companies to rally behind Anthropic in an open letter entitled "We Will Not Be Divided".

"We hope our leaders will put aside their differences, and stand together to continue to refuse the Department of War's current demands for permission to use our models for domestic mass surveillance and autonomously killing people without human oversight," the letter said.

"They're trying to divide each company with fear that the other will give in," it added. "That strategy only works if none of us know where the others stand."

- AFP

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