OpenAI has announced changes to its recently signed agreement with the US Department of Defense following widespread backlash from users and employees.

Chief executive Sam Altman acknowledged that the company’s initial handling of the deal was “opportunistic and sloppy,” after criticism mounted over OpenAI stepping into a role previously declined by rival AI firm Anthropic.

The controversy began when Anthropic reportedly refused to remove safeguards that prevent its AI systems from being used for mass domestic surveillance or fully autonomous weapons. Anthropic’s leadership described such demands as “non-negotiable for democratic societies.”

When OpenAI moved to take up the opportunity, it faced immediate pushback. Industry data showed that uninstallations of its chatbot, ChatGPT, surged by 295 percent on Saturday, February 28.

At the same time, Anthropic’s AI assistant Claude climbed to the top of Apple’s US App Store rankings, overtaking ChatGPT as the most downloaded free app in the country.

Online communities launched a “delete ChatGPT” campaign, accusing the platform of becoming aligned with military objectives. The controversy also sparked dissent within the tech industry. Approximately 100 OpenAI employees joined 796 staff members from Google in signing an open letter warning that the US government was attempting to pressure individual companies into compliance by fostering competition among them.

The letter urged company leaders to “stand together” and reject what it described as the Defense Department’s current demands.

In response, Altman announced amendments to the agreement with the Pentagon, explicitly prohibiting OpenAI’s systems from being intentionally used for domestic surveillance of US citizens or nationals.

Under the revised terms, intelligence agencies — including the National Security Agency — would require specific contract modifications to access OpenAI’s technology.

The episode highlights growing tensions between the rapid commercialization of artificial intelligence and mounting concerns over its potential military and surveillance applications.