Artificial intelligence pioneer OpenAI has faced a backlash after its recent deal with the Pentagon, with the company’s CEO, Sam Altman, admitting that the move looked “opportunistic and sloppy”. The deal was announced after Anthropic, a rival AI firm, ended its partnership with the Pentagon due to disagreements over the use of its technology for “all legal purposes”, including potential uses such as mass surveillance or autonomous lethality.
The fallout from the deal has been significant, with Anthropic experiencing a surge in signups and its Claude AI leapfrogging OpenAI‘s ChatGPT to the top of the app charts. This is largely due to Anthropic‘s brand image as a thoughtful steward of AI, which was reinforced by its decision to stand by its principles and reject the Pentagon’s terms. In contrast, OpenAI‘s decision to agree to the Pentagon’s language, which permits the use of its technology for “all lawful purposes”, has been seen as a capitulation. According to research firm Sensor Tower, ChatGPT mobile uninstalls jumped 295%, while Anthropic downloads and paid subscriptions spiked.
The backlash against OpenAI has also been fueled by the perception that the company was trying to replace Anthropic as the Pentagon’s AI partner. The big-tech Information Technology Industry Council, whose members include Nvidia and Apple, has weighed in with a letter of concern about the Department of War’s consideration of imposing a supply-chain risk designation in response to a procurement dispute. OpenAI‘s CEO, Sam Altman, has acknowledged that the timing of the deal was poor and has called the backlash “really painful”. However, he has also stated that the deal was a “complex” decision with “extremely difficult brand consequences” in the short term, but ultimately the correct decision.
The situation is still evolving, with Anthropic reportedly back in talks with the Pentagon about salvaging their relationship. Meanwhile, OpenAI will need to navigate the fallout from its deal and work to repair its brand image. As the AI industry continues to grow and evolve, companies like OpenAI and Anthropic will need to balance their business interests with the need to address concerns about the potential downsides of AI, including mass layoffs and robot overlords. The outcome of this situation will likely have significant implications for the future of the AI industry and the role of companies like OpenAI and Anthropic in shaping its development.
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