In a dramatic twist in America’s AI race, politics and technology have collided in a very public way. While President Donald Trump has ordered federal agencies to stop using Anthropic’s AI tools, OpenAI has stepped in with a major deal of its own. OpenAI CEO Sam Altman has confirmed that his company will now deploy its AI models inside the US Department of War’s classified network, under strict safety conditions. Here’s what’s happening and why it matters. OpenAI’s deal with the US government Sam Altman announced on X that OpenAI has reached an agreement with the US Department of War (DoW) to deploy its models within the department’s secure, classified systems. Altman stressed that safety was central to the agreement. According to him, two key principles were included in the deal: OpenAI also promised to build technical safeguards so the AI behaves as intended. The models will run only on cloud networks, and Field Deployment Engineers (FDEs) will be assigned to monitor and support the systems. Altman said the company has asked the Department of War to offer similar conditions to all AI companies to ensure fairness. Why is this happening now? The deal comes just as President Donald Trump ordered all federal agencies to immediately stop using technology from AI company Anthropic. Posting on Truth Social, Trump wrote that federal departments would: “IMMEDIATELY CEASE” using Anthropic’s tools. He accused Anthropic of trying to force the Pentagon to operate under the company’s own terms of service instead of government rules. The move followed reports that negotiations between Anthropic and the Pentagon had broken down. According to Trump, the company was unwilling to adjust its terms for government use.
What did Anthropic do? Anthropic reportedly insisted on keeping certain safety and usage conditions in place while negotiating with the Pentagon. From the administration’s point of view, that was seen as the company attempting to dictate terms to the US government. Trump framed the issue as a matter of national control and sovereignty, arguing that no private AI company should set operational rules for the Defence Department. However, it’s worth noting that Anthropic has built its reputation around strict AI safety policies. The clash appears to be about who sets the final rules, the government or the AI provider. This standoff has now pushed Anthropic into political crossfire. Also read: Watch six planets in the sky at once tonight, Mercury, Venus, among other planets, to line up together
Why OpenAI signed the deal OpenAI’s agreement can be seen as both strategic and symbolic. By openly supporting the administration’s conditions, OpenAI positioned itself as a cooperative partner rather than a negotiating opponent. Interestingly, Altman also signaled that he does not want an all-out corporate war. He said OpenAI hopes tensions can “de-escalate.” Silicon Valley divided The situation has created visible divisions in the tech world. Some leaders, including Elon Musk, have publicly supported the administration’s strong stance. Meanwhile, Altman has indicated that he understands Anthropic’s safety concerns, even as OpenAI moves ahead with its own government partnership. This isn’t just about contracts; it’s about how AI should be governed in a world where technology is becoming deeply linked to national security. Also read: Instagram to alert parents if kids search for suicide terms, Meta will notify about self-harm searches via email, text, and WhatsApp
Is AI a strategic asset? At its core, this controversy is about control. Should AI companies strictly control how their models are used? Or should governments have full authority when national security is involved?
OpenAI’s deal suggests a model where companies agree to government rules but embed technical safeguards. Anthropic’s standoff shows the risks companies face when safety policies collide with political power.
