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OpenAI will amend Defense Department deal to prevent mass surveillance in the US

March 3, 2026
in AI & Technology
Reading Time: 3 mins read
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OpenAI will amend Defense Department deal to prevent mass surveillance in the US
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OpenAI’s Sam Altman said the company will amend its deal with the Defense Department (or the Department of War) to explicitly prohibit the use of its AI system on mass surveillance against Americans. Altman has published an internal memo previously sent to employees on X, telling them that the company will tweak the agreement to add language to make that point especially clear. Specifically, it says:

“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 U.S. persons and nationals.

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For the avoidance of doubt, the Department understands this limitation to prohibit deliberate tracking, surveillance, or monitoring of U.S. persons or nationals, including through the procurement or use of commercially acquired personal or identifiable information.”

Altman has also claimed in the memo that the agency affirmed that its services will not be used by its intelligence agencies, including the NSA, without a modification to their contract. He added that if he received what he believed was an unconstitutional order, he would rather go to jail than follow it.

In addition, the OpenAI CEO has admitted in the memo that the company shouldn’t have rushed to get the deal out on Friday, February 27, since the issues were “super complex and demand clear communication.” Altman explained that the company was “trying to de-escalate things and avoid a much worse outcome” but it “looked opportunistic” in the end. If you’ll recall, OpenAI announced the partnership shortly after President Trump ordered all US government agencies to stop using Claude and any other Anthropic services. To note, Anthropic started working with the US government in 2024.

The Defense Department and Secretary Pete Hegseth had been pressuring Anthropic with to remove its AI’s guardrails so that it can be used for all “lawful” purposes. Those include mass surveillance and the development of fully autonomous weapons. Anthropic refused to bow down to Hegseth’s demands and in a statement said that “no amount of intimidation or punishment” will change its “position on mass domestic surveillance or fully autonomous weapons.” Trump issued the order as a result. The Defense Department had also taken the first steps to designate Anthropic as a “supply chain risk,” which is typically reserved for Chinese companies believed to be working with their country’s government.

Altman said that in his conversations with US officials, he reiterated that Anthropic shouldn’t be designated as a supply chain risk and that he hoped the Defense Department would offer it the same deal OpenAI agreed to. In an AMA session on X over the weekend, Altman clarified that he didn’t know the details of Anthropic’s agreement and how it differed from the one OpenAI signed. But if it had been the same, he thought Anthropic should have agreed to it.

After the news broke out about OpenAI’s deal, Anthropic climbed its way to the number one spot of the App Store’s Top Free Apps leaderboard, beating out both ChatGPT and Google Gemini. Anthropic, capitalizing on Claude’s sudden popularity, launched a memory import tool to make switching to its chatbot from another company’s easier. Meanwhile, uninstalls for ChatGPT’s jumped by 295 percent day-over-day, according to Sensor Tower.

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