OpenAI Eyes NATO Contract After Pentagon Deal Sparks Employee Backlash

OpenAI is pursuing a contract to deploy its technology across classified networks used by the North Atlantic Treaty Organization (NATO), according to remarks made by CEO Sam Altman to employees on Tuesday. The revelation, reported by the Wall Street Journal, comes as the company navigates criticism over a previously announced deal to provide artificial intelligence technologies to the U.S. Department of Defense.

Altman addressed his staff in an all-hands meeting, seeking to address concerns stemming from the Pentagon contract, which some employees have “vocally criticized,” according to CNBC. He described the situation as “painful” and expressed regret over appearing “not united with the field,” the Wall Street Journal reported.

The prospective NATO contract would grant OpenAI access to classified networks throughout the alliance, a milestone recently achieved by Apple. Last month, Apple announced its products had received approval for use with classified NATO information – the first consumer devices to do so. Though, the Pentagon agreement differs significantly, allowing the Department of Defense to utilize OpenAI’s technology without OpenAI retaining “operational decisions,” as CNBC reported.

The initial contract with the Pentagon, announced in June of last year through the Chief Digital and Artificial Intelligence Office (CDAO), is worth up to $200 million, according to OpenAI’s announcement of its OpenAI for Government product. This deal followed signals from NATO last year indicating a substantial increase in defense budgets among its members, a development venture capitalist Dave Harden predicted would trigger an “AI gold rush.”

Altman, in his remarks to employees, also defended the Pentagon deal, acknowledging that “the optics don’t look decent,” according to Fortune. He admitted the arrangement “looked opportunistic and sloppy,” CNBC reported, but maintained the company’s commitment to responsible AI development.

OpenAI did not respond to a request for comment from Gizmodo regarding the NATO contract.

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