OpenAI Rushes Into Pentagon Deal After Anthropic Fallout
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OpenAI moved quickly to secure a Department of Defense contract after negotiations between Anthropic and the Pentagon collapsed. Following the breakdown, President Donald Trump reportedly ordered federal agencies to phase out Anthropic’s technology within six months, while Defense Secretary Pete Hegseth labeled the company a supply-chain risk.
OpenAI CEO Sam Altman later admitted the agreement was “definitely rushed” and acknowledged that “the optics don’t look good.” Still, the company announced it had reached a deal to deploy its AI models in classified environments, positioning itself as the Pentagon’s new AI partner amid mounting political and industry tensions.