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OpenAI updates Pentagon deal to address AI surveillance concerns
Despite the amendments, OpenAI has faced significant backlash since signing its Pentagon deal

OpenAI updates Pentagon deal to address AI surveillance concerns

Mar 03, 2026
12:59 pm

What's the story

OpenAI has updated its deal with the Pentagon, adding more language focused on privacy protections. The changes were first reported by Axios and include a clause stating that "the AI system shall not be intentionally used for domestic surveillance of US persons and nationals." The amendment also emphasizes that this restriction prohibits deliberate tracking or monitoring of US persons through commercially acquired personal information.

Deal details

Tensions between Pentagon and AI firms escalate

The updated deal comes amid growing concerns over surveillance by AI companies. A report by The New York Times highlighted the rift between the Pentagon and OpenAI rival Anthropic, which was labeled a "supply-chain risk" and barred from working with several major companies. The conflict stemmed from Anthropic's concerns over surveillance involving unclassified bulk data on Americans that could track their physical location and browsing history.

Surveillance position

Pentagon insists they are not interested in mass surveillance

The Pentagon has maintained that Anthropic's demands are for provisions preventing actions already deemed illegal. Pentagon spokesman Sean Parnell said, "The Department of War has no interest in using AI to conduct mass surveillance of Americans (which is illegal)." He further clarified that the department only seeks permission for legal actions to avoid risking critical military operations and potentially endangering warfighters.

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Privacy assurance

OpenAI CEO confirms commitment to privacy in updated deal

OpenAI CEO Sam Altman has echoed Anthropic's concerns and confirmed the company's commitment to privacy in the updated deal. He shared an internal post on X, saying they have been working with the Department of War (DoW) to add language clarifying their principles. The addition reads, "Consistent with applicable laws, including the Fourth Amendment...the AI system shall not be intentionally used for domestic surveillance of US persons and nationals."

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Backlash response

Backlash against OpenAI continues to grow

Despite the amendments, OpenAI has faced significant backlash since signing its Pentagon deal. A boycott campaign against ChatGPT, called QuitGPT, has gained traction with over 1.5 million participants. The site encourages users to "make an example of ChatGPT" and "send a clear signal to ICE enablers that their actions will not go unpunished." Popular singer Katy Perry has also announced her switch to Claude for all her AI needs amid this controversy.

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