This article first appeared on GuruFocus.
OpenAI (OPENAI) CEO Sam Altman is walking back the rollout of the company’s latest Pentagon deal, saying in hindsight the company shouldn’t have rushed the announcement.
The comments came just hours after the White House directed federal agencies to stop using rival Anthropic’s AI tools, putting defense related AI contracts squarely in the political spotlight. OpenAI had revealed a new agreement with the Department of Defense on Friday, but Altman said the company would now update the contract language to make clear its systems would not be used for domestic surveillance of U.S. citizens. He also said the Defense Department confirmed OpenAI’s tools would not be deployed by intelligence agencies such as the NSA.
Altman acknowledged the optics were not ideal. He said OpenAI had tried to ease tensions but that the timing made the move look opportunistic and sloppy. He also stressed that there are still limits to what AI systems can responsibly handle in military settings.
The broader context includes competitors like Alphabet (NASDAQ:GOOG) and xAI, which have also secured defense related awards.
