OpenAI made a Pentagon deal overnight. Did anyone ask their safety committee?
A 24-hour Pentagon deal tested a key safeguard OpenAI promised would survive its pivot to for-profit.
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min read

When the California and Delaware Attorneys General agreed not to contest OpenAI’s restructuring from a nonprofit into a for-profit last October, one of the most important concessions their offices secured was a requirement that safety and security decisions at the new for-profit public benefit corporation (PBC) be made with a sole fiduciary duty to OpenAI’s charitable mission (i.e., with no consideration for the commercial interests of the organization).
Under the memorandum of understanding (MOU) signed between California and OpenAI, the PBC board may not consider shareholder interests when making safety and security decisions, which are broadly defined to include model deployment decisions. The board exercises this authority through a Safety and Security Committee (SSC) housed at the nonprofit organization and chaired by Zico Kolter, a Carnegie Mellon professor who sits exclusively on the nonprofit board.
In other words, safety-related decisions about when, where, and how OpenAI models are deployed in the world are ultimately the purview of the SSC, a four-person committee tasked with making such decisions without any consideration for OpenAI’s commercial interests. This arrangement, in the Attorney General’s eyes, was the mechanism through which the public interest would survive the restructuring.

Last week, four months after this restructuring was made official, the company struck a controversial deal with the Pentagon to deploy its models in classified military environments without the hard red lines on mass surveillance and autonomous lethal weapons that had sunk negotiations between the Department of War and Anthropic, an OpenAI competitor.
The deal came together at extraordinary speed. On Thursday evening, after Anthropic first announced that they didn’t intend to sign a deal, Altman sent an internal memo telling employees that OpenAI was pursuing an agreement with the Pentagon to deploy OpenAI’s models, instead of Anthropic’s, on classified military networks. On Friday afternoon, he told staff at an all-hands that a deal was taking shape, with OpenAI’s Head of National Security Partnerships Katrina Mulligan and Head of National Security Policy Sasha Baker presenting alongside him. That same Friday evening, Trump said he had banned Anthropic from all federal agencies, and Defense Secretary Pete Hegseth said he had designated the company a supply chain risk. Hours later, late on Friday night, Altman announced on X that OpenAI’s deal was done. The entire sequence, from the first internal discussion of a potential OpenAI deal to the final public announcement, took roughly 24 hours. Altman himself later called it “definitely rushed” and admitted it “looked opportunistic and sloppy.”
The key issue looming over this saga is the potential enablement of mass surveillance and autonomous weapons using OpenAI models. This seems like a clear example of the type of safety-relevant decision that the SSC should be making — insulated from the financial incentives of the new contract, or the financial disincentives that would come with joining Anthropic in being labeled a supply chain risk (at a minimum risking revenue from their previous $200 million contract with the Pentagon, although far more could be at stake if government vendors get spooked by the decision and turn to other options).
Neither OpenAI nor any member of the SSC has said publicly that the nonprofit committee was consulted before the deal was announced. Instead, the spokespeople who have defended the deal both publicly and internally have been PBC staff (Altman, Mulligan, Baker, and safety researcher Boaz Barak). The SSC chair and two of its other three members seem to have said nothing. Retired General Paul Nakasone, the fourth member of the SSC, did address the situation the following Monday, but not in such a way that suggested ownership of the decision, or even detailed knowledge of its specifics. According to Axios, he said the country needed all major AI companies, including Anthropic, working with the government. He called Anthropic’s supply chain risk designation “not right” and the broader situation “not a good space for our nation.” He called on lawmakers to think critically about monitoring the use of AI in the military. But, overall, he described the weekend’s fallout, after the deal had been made, as something he witnessed rather than something he shaped: “The discussions over the weekend and the tenor of those discussions were tough for me to listen to.” Axios’ reporting of the event, the most detailed public account, contains no indication that Nakasone was involved in the decision-making that led to the “rushed” and seemingly “opportunistic” deal that came about on Friday.
Whether the SSC would have reached a different conclusion depends on what you think a mission-first review would have flagged — and whether financial motivations may have been weighing on the PBC. OpenAI’s deal arrived at the precise moment when a competitor was being driven out of the classified AI market, creating a commercial opportunity for the firm, but also with the implicit threat of losing an unbounded amount of revenue if OpenAI were similarly deemed a supply chain risk (the designation Anthropic was faced with after refusing the contract, which could have jeopardized its work with other government vendors). An SSC considering only the mission might well have agreed to proceed, but it also might have insisted on the stronger safeguards that were patched in three days later.
In practice, the closest thing to safety oversight this deal received came not from the SSC but from OpenAI’s own rank-and-file employees. 100 OpenAI employees signed a letter asking leadership to “continue to refuse the Department of War’s current demands for permission to use our models for domestic mass surveillance and autonomously killing people without human oversight.” Research scientist Aidan McLaughlin said, “I personally don’t think this deal was worth it.” Alignment researcher Leo Gao called the original contract language “obviously just ‘all lawful use’ followed by a bunch of stuff that is not really operative except as window dressing.”
We really can’t know, from the outside, whether the SSC was or was not consulted. Board committees deliberate privately, and Nakasone’s comments weren’t altogether inconsistent with having played a more active role in the negotiation. But the weight of circumstantial evidence runs in one direction: the compressed timeline, the fact that nearly every person involved in publicly defending the deal was a PBC employee, the complete silence from the SSC chair and three of its four members, the framing of Nakasone’s public remarks, the contract deficiencies that required post-hoc patching, the admission by Sam Altman that the deal was “definitely rushed” and appeared “opportunistic and sloppy,” and the absence of any reference to the SSC or the nonprofit board in OpenAI’s extensive public communications about the deal (all of which were primarily attempting to reassure people that they had handled this responsibly) collectively point toward the hypothesis that this decision was made hastily by the PBC without real engagement from the SSC beyond a simple heads-up.
The point of raising this is not to relitigate a deal that has already been struck. The terms have been agreed upon, the contract will proceed, and while reasonable people can disagree about whether OpenAI should have engaged with the Pentagon at all, de-escalation seems to be in everyone’s interest at this point.
What matters now is what happens next time. The Not for Private Gain coalition warned in November that it is unrealistic “to expect part-time directors alone to effectively exercise that power over a company with thousands of employees working at the frontier of a rapidly changing technology.” That warning looks prescient. If the SSC is going to function as something more than a paper commitment, it needs staffing, communication channels, and the institutional expectation that it will be in the room when decisions of this magnitude are being made.
If they haven’t already, California and Delaware ought to be asking serious questions about this saga and whether the safeguards that OpenAI promised them are holding up under their first real test. Because now, the question for the Attorneys General, the nonprofit board, and OpenAI at large is whether they will be ready for the next one.
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We engage in a combination of research, outreach, and public advocacy to ensure that AI companies are meeting public expectations, and living up to their past promises, when it comes to ensuring responsible AI development and deployment.
The most important component of our work is helping to identify and disseminate industry best practices for AI development. We review technical literature, regulatory guidance, and case studies to distill concrete measures—such as frontier-model risk assessments, red-teaming requirements, audit regimes, and whistle-blower protections—and advocate for the most important voluntary steps that companies can take today to ensure they are acting responsible.
We also monitor whether companies follow their stated policies and industry norms. When evidence shows back-tracking or inadequate controls, we document these gaps and publicly press for corrective action—mobilizing employees, customers, and civil-society allies until the company adopts the necessary safeguards.
Finally, we publicize our research to help ensure the public is aware of how AI developers stack up on safety and responsibility. We release concise scorecards, incident analyses, and memos so that regulators, investors, and the wider public can see how individual developers perform on safety and responsibility.
Various AI experts including Nick Bostrom and Stuart Russell have compared the development of advanced AI to the myth of King Midas.
According to the legend, King Midas once asked a powerful satyr to make it so that whatever he touched instantly turned into gold. At first, he was thrilled with his new powers. But the King soon discovered that he couldn’t touch food, water, or even his family without instantly turning them to metal. In other words, the sudden attainment of an incredible power with insufficiently well-specified goals and safeguards led to a terrible tragedy.
Much like King Midas, tech companies are now eagerly pursuing incredible wealth and power by developing artificial intelligence, a technology that will change our world forever. But how will we know that it is designed in alignment with our collective human values? If we misspecify even a single goal or safeguard for these systems, how will we prevent them from causing an incredible catastrophe?
In the words of Stuart Russell, “If you continue on the current path, the better AI gets, the worse things get for us. For any given incorrectly stated objective, the better a system achieves that objective, the worse it is.”
The Midas Project is a nonprofit organization founded in early 2024 by Tyler Johnston. Our work is supported by a small core team and a wider base of volunteers and supporters. We are a nonprofit, tax-exempt, 501(c)(3) organization that relies on donations from the public.
No. One of our central values is a pro-technology attitude.
Progress in technology has improved lives for millions of people around the globe (after all, without it, we wouldn’t have penicillin, air conditioning, or the internet). Artificial intelligence is already being used by millions to help improve medicine, education, and overall living standards. We believe this progress should continue, and we hope AI will be a positive force in the world.
However, we are also realists — and skeptical realists at that. We believe advanced AI systems may be a “dual-use” technology that can be used for harm as well. In order to avert social inequality, concentration of power, or AI-driven catastrophes, everybody needs to have a voice at the table when decisions about development and deployment are being made.
Currently, the vast majority of these decisions about the future of AI are being made in shadowy corporate boardrooms with little oversight and accountability. That’s why The Midas Project is committed to raising awareness about the risks of AI, and ensuring that global citizens are given a chance to make their voice heard.
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