OpenAI Amends Pentagon Deal After Backlash, Altman Admits Deal Was 'Sloppy'

OpenAI CEO Sam Altman has acknowledged that the company's recent deal with the U.S. Department of Defense was 'rushed' and 'looked opportunistic and sloppy,' leading to significant backlash. In response, OpenAI is amending the contract to include more explicit safeguards, particularly a ban on the use of its AI for domestic surveillance of U.S. persons and nationals.

The controversy erupted after OpenAI announced its partnership with the Pentagon just hours after the U.S. government banned federal agencies from using AI tools from its competitor, Anthropic. The timing, coupled with the nature of the deal, led to accusations that OpenAI was capitalizing on Anthropic's dispute with Washington.

Altman, in a repost of an internal memo, detailed the amendments, stating that the Department of Defense has affirmed that OpenAI's services will not be used by intelligence agencies like the NSA. The new contract language explicitly prohibits 'deliberate tracking, surveillance, or monitoring of U.S. persons or nationals.'

The backdrop to this is the breakdown in negotiations between Anthropic and the Pentagon. Anthropic had sought guarantees that its AI models would not be used for purposes such as domestic surveillance or autonomous weapons systems without human control. When these talks failed, the government designated Anthropic a 'supply-chain threat.' OpenAI's subsequent deal was seen by many as a move to fill the void, prompting a wave of criticism and a reported increase in users uninstalling ChatGPT.

In his statement, Altman admitted the mistake, saying, 'We were genuinely trying to de-escalate things and avoid a much worse outcome, but I think it just looked opportunistic and sloppy.' He also expressed support for Anthropic, stating that he hopes the Department of Defense offers them the same terms that OpenAI has agreed to, indicating a desire to maintain a level playing field in the AI industry.