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Sam Altman says OpenAI will tweak its Pentagon deal after surveillance backlash

Protestors hold placards and a large banner during the "March Against The Machines" Protest. Hundreds of protesters joined the "March Against The Machines" in London, marching from OpenAI's offices to major tech headquarters in King's Cross. Organized by climate and tech accountability groups,
OpenAI is amending its contract with the Pentagon after public backlash. Loredana Sangiuliano/SOPA Images/LightRocket via Getty Images
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OpenAI said it is amending its contract with the Pentagon.

After public concerns that OpenAI's new deal with the Pentagon would allow the government to use its AI for mass surveillance, CEO Sam Altman posted an internal memo to X on Monday evening, saying that the company is working with the Pentagon to "make some additions in our agreement."

"Consistent with applicable laws, including the Fourth Amendment to the United States Constitution, National Security Act of 1947, FISA Act of 1978, the AI system shall not be intentionally used for domestic surveillance of US persons and nationals," Altman wrote on X.

"The Department also affirmed that our services will not be used by Department of War intelligence agencies (for example, the NSA). Any services to those agencies would require a follow-on modification to our contract," Altman added.

Altman's memo came after OpenAI struck a deal with the Pentagon on Friday to deploy its AI models on classified military networks. The contract stepped into a standoff between the Pentagon and Anthropic and happened just a day before the US struck Iran.

In his note, Altman said that he got things "wrong," saying the company should not have "rushed" to seal the deal.

"The issues are super complex, and demand clear communication," he said. "We were genuinely trying to de-escalate things and avoid a much worse outcome, but I think it just looked opportunistic and sloppy."

Hours before the OpenAI deal was announced, President Donald Trump ordered federal agencies to halt use of Anthropic's Claude system, following a breakdown in talks over the military use of AI. Anthropic had specific red lines: explicit contractual bans on mass domestic surveillance and fully autonomous weapons, which are systems capable of killing without human oversight.

As of Friday, nearly 500 OpenAI and Google employees signed on to an open letter in support of Anthropic's decision.

The OpenAI deal soon triggered backlash and concerns that OpenAI's tools would be used for domestic surveillance or for lethal autonomous weapons, claims which Altman immediately disputed. Protests took place in front of the OpenAI office in San Francisco and London, and QuitGPT, an advocacy group against OpenAI, has launched a boycott and organized a protest scheduled for Tuesday.

Anthropic did not immediately respond to a request for comments.

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Katherine Li, West Coast breaking news reporter at the Business Insider.
Katherine Li
Katherine Li is a reporter on Business Insider's West Coast business news team. She covers career,  the AI startup culture, and how AI is affecting economic sentiments.Previously, she was a newsroom fellow who wrote international breaking news and produced newsletters for Semafor. Before that, she wrote about climate policies for The Lever, covered the AAPI community for the SF Chronicle as a freelancer, and wrote about the 2019 Hong Kong protests as an intern for The New York Times.She is an alumna of the Graduate School of Journalism at UC Berkeley and a graduate of the international journalism program at Hong Kong Baptist University with minors in French and English literature.  Email Katherine at katherineli@insider.com and follow her on Bluesky @katherineli.bsky.socialExpertise
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