Claude Hits No. 1 On App Store As OpenAI’s Pentagon Deal Faces Backlash

OpenAI CEO Sam Altman admitted the deal was "definitely rushed".

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Claude has officially overtaken ChatGPT to become the top free app on the US App Store

This follows a dramatic dispute between AI firm Anthropic and the US Pentagon.

The shift happened after President Donald Trump ordered federal agencies to stop using Anthropic's technology. Secretary of Defence Pete Hegseth also labelled the company a national security supply-chain risk.

Negotiations reportedly failed when Anthropic set "red lines" against using its AI for autonomous weapons or mass surveillance.

OpenAI swiftly filled the gap by announcing a deal to deploy its models in classified environments

Taking to X, CEO Sam Altman admitted the deal was "definitely rushed" and noted "the optics do not look good".

However, he maintained that OpenAI uses similar safety safeguards as its competitor.

"I value my liberty and safety, and yours. I believe that strong democracy, and a strong US in particular, is a very good thing for the world. The 16 year old me thought every country should just abolish their defense department at the same time. I wish he were right, but I now thing [sic] the world is a much more fragile place," he posted.

OpenAI published a blog post stating its models cannot be used for domestic surveillance or high-stakes automated decisions

The company claims its "multi-layered approach" provides better protection than simple usage policies.

"We retain full discretion over our safety stack, we deploy via cloud, cleared OpenAI personnel are in the loop, and we have strong contractual protections. This is all in addition to the strong existing protections in US law," the company said.

Critics such as Techdirt's Mike Masnick argue the deal could still allow for surveillance through legal loopholes

OpenAI posted the terms of the deal. Reveals that it absolutely does allow for domestic surveillance. EO 12333 is how the NSA hides its domestic surveillance by capturing communications by tapping into lines *outside the US* even if it contains info from/on US persons. openai.com/index/our-ag...

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— Mike Masnick (@masnick.com) 1 March 2026 at 13:20

"EO 12333 is how the NSA hides its domestic surveillance by capturing communications by tapping into lines *outside the US* even if it contains info from/on US persons," he pointed out in his post on Bluesky.

Meanwhile, Anthropic is seeing record-breaking growth, according to TechCrunch. Daily sign-ups have hit all-time highs this week, with free users increasing over 60% since January.

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