(Editor’s note: This story has been updated to include Anthropic’s statement)
On Friday, President Donald Trump ordered federal agencies to phase out Anthropic’s technology as the Pentagon reportedly agreed to OpenAI’s safety terms for deploying artificial intelligence in classified military settings.
Pentagon Aligns With OpenAI On Military AI Guardrails
The Pentagon has agreed in principle to follow safeguards proposed by OpenAI for using its models in classified environments, Axios reported, citing a source familiar with the talks, though no contract has been finalized.
OpenAI’s framework reportedly bars the use of its AI for mass surveillance or autonomous weapons.
It requires that models remain confined to secure cloud environments rather than be embedded directly into edge systems such as weapons platforms.
The company also seeks continuous monitoring capabilities and security-cleared researchers to oversee deployments and advise on risk.
CEO Sam Altman reportedly told employees the company’s approach centers on strengthening safeguards as it learns from real-world use.
The Pentagon and OpenAI did not immediately respond to Benzinga‘s requests for comment.
Trump Orders Phase-Out Of Anthropic
This development came hours after Trump directed federal agencies to cease using Anthropic’s technology, citing what he described as unacceptable restrictions on lawful military applications.
The order includes a six-month transition period for agencies currently using Anthropic’s products.
Defense Secretary Pete Hegseth said the military must have “full, unrestricted access” to AI systems for lawful defense purposes and announced plans to designate Anthropic as a supply-chain risk to national security.
Anthropic has drawn red lines against mass surveillance and the use of autonomous weapons.
Following Hegseth’s comments on X, Anthropic shared a statement in a blog post, saying, “We have not yet received direct communication from the Department of War or the White House on the status of our negotiations.”
The AI startup also plans to challenge any supply chain risk designation against it in court.
Tech Titans And Wall Street React
The clash sparked immediate reaction across Silicon Valley and Wall Street.
Ilya Sutskever, co-founder and former chief scientist of OpenAI, wrote on X that it was “extremely good” that Anthropic had not backed down. He added that it was “significant” that OpenAI had taken a similar stance.
SkyBridge Capital founder Anthony Scaramucci described the episode as the government “bullying” a private company.
Investor Ross Gerber said he directed employees at his firm to use Anthropic’s Claude model “as much as possible.”
Elizabeth Warren Demands Transparency
Sen. Elizabeth Warren (D-Mass.) also took to X and said that the American public “deserves to know” what Pentagon officials are planning and called on Hegseth to testify about the decision.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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