How OpenAI caved to the Pentagon on AI surveillance
By Hayden Field
Published on March 2, 2026.
The Pentagon has reportedly agreed to a softer deal with OpenAI (OpenAI) regarding AI surveillance, stating that if it is technically legal, the US military can use OpenAI’s technology to carry out mass domestic spying operations. The agreement includes three words: “any lawful use.” However, a source familiar with the Pentagon confirmed that the Pentagon would not back down on its desire to collect and analyze bulk data on Americans. This is not reassuring as US intelligence agencies have been expanding mass surveillance programs since 9/11, which they claim fall within the legal limits of these agreements. Critics argue that the law hasn't yet caught up with AI's ability to conduct surveillance on a massive scale. OpenAI's contract acknowledges existing laws and Pentagon policies, which can change at any time. However, it acknowledges that deploying OpenAI technology only in the cloud means little for either of these limits.
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