OpenAI’s high-profile deal with the Pentagon has sparked a wave of criticism from staffers, customers, and lawmakers. The company initially agreed to give the Department access to its AI models in February, but after public outcry, CEO Sam Altman amended the contract to include clearer safeguards against mass domestic surveillance.
Staff members have quit their jobs in opposition to the deal, and consumers are uninstalling ChatGPT due to concerns over how the technology could be used. Many workers who previously supported Anthropic, a rival AI company, now express admiration for its stance on refusing the Pentagon’s deal.
To address the backlash, Altman publicly acknowledged that the process was “rushed” and that the optics didn’t look good. In an internal memo, he revealed that OpenAI had revised the contract to include explicit prohibitions on using its technology on commercially acquired data without judicial oversight. The company also committed to reworking the contract to prevent mass surveillance.
However, despite these efforts, the controversy surrounding the deal continues to unfold. Lawmakers have introduced an amendment to the Defense Production Act to prohibit retaliation against developers who institute safeguards on high-risk technologies. As a result, OpenAI’s reputation remains under scrutiny, and its reign as the leading AI company is facing challenges.
Source: https://www.businessinsider.com/openai-pentagon-deal-fallout-backlash-anthropic-altman-amodei-trump-2026-3