OpenAI Pentagon deal ignites feud with Anthropic as ChatGPT uninstalls surge 295%

Reviewed byNidhi Govil

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OpenAI CEO Sam Altman signed a Department of Defense contract just hours after pledging to uphold the same AI safety protections as Anthropic. The deal sparked a 295% surge in ChatGPT uninstalls and prompted Anthropic CEO Dario Amodei to call OpenAI's messaging 'straight up lies.' The conflict highlights growing tensions over AI use in surveillance and autonomous weaponry as safety concerns collide with military ambitions.

OpenAI Military Deal Triggers Industry Conflict

OpenAI signed a Pentagon contract with the Department of Defense just hours after CEO Sam Altman publicly supported Anthropic's stance on AI safety, igniting a fierce dispute between two of the industry's leading companies. In an internal memo obtained by The Information, Anthropic CEO Dario Amodei called OpenAI's messaging around the deal "straight up lies" and accused the company of engaging in "safety theater"

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. The conflict emerged after Anthropic refused to accept the Department of Defense's demand for "any lawful use" of its AI technology, particularly regarding AI use in surveillance and autonomous weaponry

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Source: Digit

Source: Digit

Amodei stated that "the main reason [OpenAI] accepted [the DoD's deal] and we did not is that they cared about placating employees, and we actually cared about preventing abuses"

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. Anthropic had maintained a $200 million contract with the military but insisted the Department of Defense affirm it would not use Claude AI to enable domestic mass surveillance or fully autonomous weapons systems

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Public Backlash Drives ChatGPT Uninstalls to Record Levels

Consumer reaction to the OpenAI military deal was swift and severe. ChatGPT uninstalls jumped 295% day-over-day on Saturday, February 28, according to market intelligence provider Sensor Tower, compared to the app's typical uninstall rate of 9% over the previous thirty days

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. Meanwhile, U.S. downloads for ChatGPT dropped 13% day-over-day on Saturday and continued falling 5% on Sunday

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Source: Futurism

Source: Futurism

Claude AI benefited dramatically from the controversy, with downloads jumping 37% on Friday, February 27, and 51% on Saturday

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. The app rocketed to the No. 1 position on the U.S. App Store, climbing over 20 ranks compared to a week earlier

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. Third-party data provider Appfigures noted that Claude's total daily U.S. downloads on Saturday surpassed ChatGPT for the first time, with some estimates placing the increase as high as 88% day-over-day

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. One-star reviews for ChatGPT surged 775% on Saturday, then grew another 100% on Sunday, while five-star reviews declined by 50%

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Ethical Concerns Regarding AI Use in National Security

The dispute centers on fundamental questions about lawful use of AI in military applications. While Sam Altman claimed in a morning memo on February 27 that OpenAI opposed AI for "mass surveillance or autonomous lethal weapons," the company signed the Department of Defense contract that same evening

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. OpenAI stated in a blog post that its contract allows use of its AI systems for "all lawful purposes" and that the Pentagon "considers mass domestic surveillance illegal"

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. However, critics point out that laws can change, and what is illegal now might be permitted in the future

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Source: BNN

Source: BNN

Amodei wrote to staff that he believes "this attempted spin/gaslighting is not working very well on the general public or the media, where people mostly see OpenAI's deal with the DoW as sketchy or suspicious, and see us as the heroes"

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. After Anthropic refused the Pentagon's terms, Secretary of Defense Pete Hegseth designated the company a supply-chain risk, preventing government agencies from doing business with Anthropic

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AI Safety Efforts Face Setbacks Amid Military Pressure

The conflict represents a broader retreat from AI safety commitments across the industry. Anthropic announced on February 24 that it was making changes to its Responsible Scaling Policy, a founding principle that tied model releases to safety procedures

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. The company acknowledged that "the policy environment has shifted toward prioritizing AI competitiveness and economic growth, while safety-oriented discussions have yet to gain meaningful traction at the federal level"

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The situation is complicated by OpenAI's relationship with Microsoft Azure, which had been providing Pentagon officials access to OpenAI models through Azure OpenAI services since 2023, even when OpenAI's usage policies explicitly banned military use

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. Some OpenAI employees discovered the Pentagon had already started experimenting with Azure OpenAI, and saw Pentagon officials walking through the company's San Francisco offices that year

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. By January 2024, OpenAI updated its policies to remove the blanket ban on military use, with several employees learning about the change through media reports

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Market Implications and AI Arms Race Concerns

The fallout may have significant business implications for both companies. Menlo Ventures reported that Anthropic accounted for 40% of enterprise LLM spend in 2025, while OpenAI's enterprise share dropped to 27% from 50%

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. Following the controversy, Anthropic's revenue has reportedly shot up to about a $20 billion revenue run rate

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The lack of international agreements on AI in military applications means every advanced military must adopt AI capabilities to remain competitive with adversaries, creating what experts describe as an unavoidable AI arms race

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. The bigger question, as observers note, is how autonomous weaponry and killer robot drones that identify and eliminate human targets entered serious consideration without international debate

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. Altman later told OpenAI employees that the company gets no say in what the Department of Defense does with its AI, stating employees don't get to weigh in on specific military operations

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