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OpenAI has amended its contract with the US defence department just days after it was signed, as chief executive Sam Altman said the rush to make a deal last week “looked opportunistic and sloppy”.
The company agreed terms with the Pentagon on Friday, handing over its AI models for use in classified military operations. The deal came hours after the collapse of negotiations between Anthropic, OpenAI’s rival, and defence secretary Pete Hegseth.
OpenAI claimed its agreement “has more guardrails than any previous agreement for classified AI deployments, including Anthropic’s”.
But on Monday, Altman said the ChatGPT maker was working with the department to add terms to its contract to ensure “the AI system shall not be intentionally used for domestic surveillance of US persons and nationals”.
Intelligence services such as the National Security Agency will be excluded from the deal for the time being, he added.
OpenAI has come under pressure since signing its deal with the Pentagon on Friday. Employees at the company have voiced concerns internally, according to people familiar with the matter, and on social media.
Over the weekend, chalk graffiti appeared outside OpenAI’s San Francisco office saying “NO TO MASS SURVEILLANCE” and urging staff to “Do the right thing!”
Anthropic and OpenAI have expressed similar concerns about the use of AI for surveillance and for weapons with no human oversight, leading to questions about how OpenAI managed to strike a deal with the Pentagon where Anthropic had failed.
OpenAI said it was satisfied it could retain its red lines around domestic surveillance and autonomous weapons with a mixture of technical measures to stop misuse of its models, by deploying only via the cloud rather than on computers installed on the military hardware that might carry out attacks, and by ensuring its employees were in the loop.
Altman also suggested he had more trust in existing laws: “Anthropic seemed more focused on specific prohibitions in the contract, rather than citing applicable laws, which we felt comfortable with,” he said during an online Q&A on Saturday.
But on Monday Altman acknowledged some of the same concerns about how AI could enable mass data gathering that Anthropic had raised.
“We shouldn’t have rushed to get this out on Friday. The issues are super complex, and demand clear communication,” wrote Altman. “We were genuinely trying to de-escalate things and avoid a much worse outcome, but I think it just looked opportunistic and sloppy.”
The additional terms announced on Monday would “prohibit deliberate tracking, surveillance or monitoring of US persons or nationals, including through the procurement or use of commercially acquired personal or identifiable information”.
Anthropic’s talks with the Pentagon, in contrast, collapsed shortly before a Friday deadline to agree contract language.
The Trump administration has since threatened to cut Anthropic from government contracts and the Pentagon’s supply chain, which could deal a major blow to its business and cut it off from key partners who also work with the military.
The US Treasury, Federal Housing Finance Agency and government-backed mortgage giants Fannie Mae and Freddie Mac all announced they would end Anthropic contracts on Monday.
Dario Amodei, Anthropic’s chief executive, had laid out two red lines prohibiting the use of his company’s AI models for domestic mass surveillance or in lethal autonomous weapons.
On Friday, the Pentagon signalled it was open to removing phrases from the contract that Anthropic felt left too much to interpretation.
Senior figures at Anthropic felt a deal was close, according to a person with direct knowledge of the talks. But the negotiations fell apart shortly afterwards, with the parties failing to agree terms around the mass collection of publicly available data, added the person.
Hegseth wanted the company’s models available for “all lawful use”, but Anthropic executives argue that current US law allows for mass surveillance using AI tools and have pushed for contractual safeguards until new legislation is put in place.
“Congress is not the fastest moving body in the world,” Amodei told CBS News on Saturday. “For right now, we are the ones who see this technology on the front line.”
