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Sam Altman says OpenAI will tweak its Pentagon deal after surveillance backlash

OpenAI said it is amending its contract with the Pentagon.

After public concerns that OpenAI’s new deal with the Pentagon would allow the government to use its AI for mass surveillance, CEO Sam Altman posted an internal memo to X on Monday evening, saying that the company is working with the Pentagon to “make some additions in our agreement.”

“Consistent with applicable laws, including the Fourth Amendment to the United States Constitution, National Security Act of 1947, FISA Act of 1978, the AI system shall not be intentionally used for domestic surveillance of US persons and nationals,” Altman wrote on X.

“The Department also affirmed that our services will not be used by Department of War intelligence agencies (for example, the NSA). Any services to those agencies would require a follow-on modification to our contract,” Altman added.

Altman’s memo came after OpenAI struck a deal with the Pentagon on Friday to deploy its AI models on classified military networks. The contract stepped into a standoff between the Pentagon and Anthropic and happened just a day before the US struck Iran.

In his note, Altman said that he got things “wrong,” saying the company should not have “rushed” to seal the deal.

“The issues are super complex, and demand clear communication,” he said. “We were genuinely trying to de-escalate things and avoid a much worse outcome, but I think it just looked opportunistic and sloppy.”

Hours before the OpenAI deal was announced, President Donald Trump ordered federal agencies to halt use of Anthropic’s Claude system, following a breakdown in talks over the military use of AI. Anthropic had specific red lines: explicit contractual bans on mass domestic surveillance and fully autonomous weapons, which are systems capable of killing without human oversight.

As of Friday, nearly 500 OpenAI and Google employees signed on to an open letter in support of Anthropic’s decision.

The OpenAI deal soon triggered backlash and concerns that OpenAI’s tools would be used for domestic surveillance or for lethal autonomous weapons, claims which Altman immediately disputed. Protests took place in front of the OpenAI office in San Francisco and London, and QuitGPT, an advocacy group against OpenAI, has launched a boycott and organized a protest scheduled for Tuesday.

Anthropic did not immediately respond to a request for comments.




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Sam Altman says concerns of ChatGPT’s energy use are overblown: ‘It also takes a lot of energy to train a human’

Sam Altman is pushing back on the idea that ChatGPT consumes too much energy.

“One of the things that is always unfair in this comparison is people talk about how much energy it takes to train an AI model relative to how much it costs a human to do one inference query,” Altman told The Indian Express last week on the sidelines of a major AI summit. “But it also takes a lot of energy to train a human.”

Altman suggested it’s not an apples-to-apples comparison, arguing that it’s unfair to discount the years spent nurturing and educating someone to be capable of making their own inquiries.

“It takes a lot of energy to train a human,” he said, prompting some laughter in the crowd. “It takes, like, 20 years of life, and all of the food you eat during that time before you get smart.”

Altman said the clock really began thousands of years ago.

“It took, like, the very widespread evolution of the 100 billion people that have ever lived and learned not to get eaten by predators and learned how to, like, figure out science or whatever,” he said.

Altman also called out what he said were “totally insane” claims on the internet that OpenAI is guzzling down water to power ChatGPT.

“Water is totally fake,” Altman said, when asked about concerns AI companies use too much water. “It used to be true, we used to do evaporative cooling in data centers, but now that we don’t do that, you know, you see these like things on the internet where, ‘Don’t use ChatGPT, it’s 17 gallons of water for each query’ or whatever.”

In June, Altman said that the average ChatGPT query consumes roughly the amount of energy needed to power a lightbulb for a few minutes.

“People are often curious about how much energy a ChatGPT query uses; the average query uses about 0.34 watt-hours, about what an oven would use in a little over one second, or a high-efficiency lightbulb would use in a couple of minutes,” he wrote on X.

Altman said it is fair as a whole to point out the AI industry’s overall energy consumption because of the large growth in usage. He said it’s why he and other AI CEOs have pushed alternative energy sources like solar, wind, and nuclear.

Unlike other CEOs, namely xAI’s Elon Musk, Altman is dismissive of the idea that space-based data centers are realistic in the next decade, a concept that some companies have floated as a way to reduce energy consumption.

Outside of OpenAI, Altman is a major investor in nuclear energy. He previously served as chairman of Oklo, a nuclear energy startup, and has been a major backer of Helion, which plans to build what it calls “the world’s first fusion power plant” in Washington state.

In the US, data center energy consumption is becoming a major topic. Last month, President Donald Trump said he was working with tech companies on “a commitment to the American people” to ensure that citizens don’t pay higher energy bills because of a nearby data center.

Consulting firm McKinsey & Company estimated last year that data centers could account for 14% of total power demand in the US by 2050.




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Sam Altman says Elon Musk’s idea of putting data centers in space is ‘ridiculous’

SpaceX CEO Elon Musk and OpenAI CEO Sam Altman famously don’t agree on much.

The latest point of contention: data centers in space. Musk has made it a priority. Altman thinks it’s a fantasy, at least for now.

“I honestly think the idea with the current landscape of putting data centers in space is ridiculous,” Altman said during a live interview with local media in New Delhi on Friday, causing audience members to laugh.

Altman said that orbital data centers could “make sense someday,” but factors like launch costs and the difficulty of repairing a computer chip in space remain overwhelming obstacles.

“We are not there yet,” Altman added. “There will come a time. Space is great for a lot of things. Orbital data centers are not something that’s going to matter at scale this decade.”

Musk would almost certainly disagree.

While many Big Tech and AI companies are spending billions on data center construction on Earth, Musk’s eyes are on the stars, per usual. Orbital data centers are his latest ambition, as he mentioned in an all-hands xAI meeting in December.

In February, SpaceX said its goal is to launch a “constellation of a million satellites that operate as orbital data centers.” The company has already begun hiring engineers to make that happen.

During an all-hands meeting with xAI employees this month, Musk said SpaceX’s acquisition of xAI will allow them to deploy the orbital data centers faster.

Despite Altman’s skepticism, other tech leaders are also racing to place data centers in space. Google’s Project Suncatcher, unveiled in November 2025, aims to do just that. Google CEO Sundar Pichai told Fox News Sunday the company could start placing data centers — powered by the sun — in space as early as 2027.

Tech and AI companies rely on data centers to power their products, like large language models and chatbots. Those data centers, however, can deplete water resources, strain power grids, increase pollution, and decrease the overall quality of life.

An investigation by Business Insider published last year found that over 1,200 data centers had been approved for construction across the US by the end of 2024, nearly four times the number from 2010.

Now, proposed data center campuses in Texas, Oklahoma, and elsewhere are increasingly facing stiff resistance from local communities.




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Jake Paul says Sam Altman taught him the value of a 15-minute meeting

Jake Paul was a firebrand YouTuber. Then he was an NFT merchant, and a betting site operator. Now, Paul is a professional boxer — and venture capitalist. And he’s learning from one of the biggest names in tech.

On “Sourcery,” Paul said that he met OpenAI CEO Sam Altman while sitting next to each other at President Donald Trump’s inauguration.

“Sam likes fast cars, and so do I,” Paul said. “So, we just started talking about cars, and then we got along, and that was really it.”

Paul’s Anti Fund — which is also led by his brother Logan and longtime founder Geoffrey Woo — invested in OpenAI in 2025. The biggest lesson he’s learned from Altman is efficiency, Paul said.

He described the quick-and-tidy meetings that Altman runs. The OpenAI CEO “walks into the room, sits down, let’s get right into the conversation, boom boom boom,” he said.

In 15 minutes alone, Altman was “hella productive,” Paul said. Then, Altman can go on to his next meeting and do it all over again.

“We’ll do hourlong meetings or calls and just waste time,” Paul said. “I think that was inspiring because time is the most valuable thing, and it’s the only reason you can’t accomplish more.”

Indeed, Altman has long opted for the 15-minute meeting. In a 2018 blog post, he wrote that the ideal meeting time is either around 15 to 20 minutes or 2 hours, but “the default of 1 hour is usually wrong.”

Paul has worked closely with OpenAI in the last year, beyond participating in fundraising.

Remember all of those strange Paul memes running around the internet during the Sora 2 launch? They were by design. Paul said he helped consult on the project and was one of the first to sign over his name, image, and likeness.

Woo also appeared on the podcast, and spelled out the thinking behind those far-out memes (such as an AI Paul declaring he was gay). “It was not something that was like, ‘Hey, Jake Paul is now gay.’ Jake was thoughtful in terms of why we were part of that launch.”

Woo also said that he had formed a good friendship with Altman and Mark Chen, OpenAI’s chief research officer.

For the Sora 2 launch, Paul said that he had “regular calls” with OpenAI and offered “super detailed consulting.”

“Me and my brother have however many years combined of social media experience since the beginning,” Paul said. “We were there when the term ‘influencer’ was even made up.”

This background, Paul said, helped him give good advice on what OpenAI’s social media-like interface should look like. He advised on both what creators and audiences wanted, he said.

Anti Fund closed its $30 million fund in September. Other investments include defense tech startup Anduril and prediction market Polymarket.

Woo said their ties to OpenAI remain strong. “We were just at OpenAI for three hours looking for other ways to collaborate,” he said. “Things might be cooking.”




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Sam Altman says OpenClaw creator Peter Steinberger is joining OpenAI to build next-gen personal agents

  • Sam Altman says OpenClaw creator Peter Steinberger is joining OpenAI.
  • OpenClaw is a viral AI agent launched last month.
  • Altman said Steinberger will build “next generation” AI agents at OpenAI.

OpenAI just scored a win in the AI talent wars.

Sam Altman said Sunday on X that Peter Steinberger, the creator of OpenClaw, the viral AI agent powering the agent-only social network Moltbook, is joining OpenAI.

Altman said Steinberger would build the “next generation” of personal AI agents at the company.

“He is a genius with a lot of amazing ideas about the future of very smart agents interacting with each other to do very useful things for people,” Altman said about Steinberger. “We expect this will quickly become core to our product offerings.”

Altman added that OpenClaw, which was for a brief moment in time known as Moltbot and then Clawdbot before Anthropic took notice, will live on as an open-source project supported by OpenAI.

“The future is going to be extremely multi-agent and it’s important to us to support open source as part of that,” he wrote.

Steinberger, previously best known for founding the PDF processing company PSPDFKit, came out of retirement to launch OpenClaw in late 2025.

He is likely to bring a new perspective to OpenAI’s race to develop artificial general intelligence. Steinberger said he believes AGI is best as a specialized form of intelligence rather than a generalized one.

“What can one human being actually achieve? Do you think one human being could make an iPhone or one human being could go to space?” Steinberger said on a Y Combinator podcast in February. “As a group we specialize, as a larger society we specialize even more.”




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Sam Altman says he can’t wait to get Elon Musk under oath

  • Sam Altman said he’s “really excited” to get Elon Musk under oath.
  • Their case will go to trial in April, a California judge said in January.
  • Musk has accused OpenAI and Altman of misleading him into thinking it would remain a nonprofit.

Sam Altman is pumped to take on Elon Musk in court.

“Really excited to get Elon under oath in a few months, Christmas in April!” the OpenAI CEO said in a Tuesday evening X post.

He also reposted his chief security officer Jason Kwon’s X post, with the caption “concerning.”

The post contained screenshots of a court filing from OpenAI’s attorneys, which said that Musk preferred using messaging apps like Signal or XChat with message retention settings of a week or less.

Altman and Musk took their yearslong public feud to the next level in 2024. Musk, who is Tesla and SpaceX’s CEO, launched a lawsuit against OpenAI and Altman in February 2024, accusing Altman of jeopardizing its nonprofit mission.

Musk said that he contributed $38 million to OpenAI, thinking it would remain a nonprofit. He was one of the company’s founders, along with Altman, PayPal cofounder Peter Thiel, and others.

Despite OpenAI’s attorneys’ attempts to have the case thrown out, a California judge said in a January hearing that there was enough evidence to go to trial, which is set for April.

The billionaire duo have been trading barbs on social media. Musk attacked OpenAI’s ChatGPT on January 20, writing “Don’t let your loved ones use ChatGPT.” He was responding to an X post alleging that the chatbot has been linked to multiple deaths since 2022.

Altman responded to Musk’s post, slamming Tesla’s Autopilot system as unsafe, and questioning xAI’s Grok chatbot. Grok has faced criticism from governments in several countries after reports of Grok users uploading pictures of women and minors and asking the chatbot to undress them.

Representatives for Musk and Altman did not respond to requests for comment from Business Insider.




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Chong Ming Lee, Junior News Reporter at Business Insider's Singapore bureau.

Jensen Huang says Nvidia would love to back an OpenAI IPO, and there’s ‘no drama’ with Sam Altman

Jensen Huang says Nvidia would love to invest in a future OpenAI IPO.

Huang said in an interview on CNBC’s “Mad Money” on Tuesday that there was “no drama” between Nvidia and OpenAI CEO Sam Altman, pushing back against recent chatter of tension in the relationship between the two companies.

“The first deal is on,” the Nvidia CEO said, referring to the company’s September deal with OpenAI, under which the company said it planned to invest up to $100 billion in the AI startup.

“​​And then there’s, of course, an IPO in the future,” he added. “We love to be participating in that as well,” he added.

Huang also described OpenAI as a “once in a generation company” and said Nvidia is “delighted to invest in it.”

His comments come amid reports suggesting internal unease around the deal.

The Wall Street Journal reported on Saturday that the investment had sparked internal concerns at Nvidia, with some executives questioning the deal, according to people familiar with the matter.

Separately, Reuters reported on Tuesday that OpenAI had been unhappy with certain newer Nvidia chips and had looked at alternatives since last year, citing people familiar with the matter.

Huang told reporters in Taipei on Saturday that speculation of any dissatisfaction with OpenAI was “nonsense.”

“We will invest a great deal of money, probably the largest investment we’ve ever made,” he added.

Altman has also pushed back on rumors of tension.

“We love working with NVIDIA and they make the best AI chips in the world,” wrote Altman in a post on X on Tuesday.

“We hope to be a gigantic customer for a very long time. I don’t get where all this insanity is coming from,” he added.

OpenAI is one of the world’s most valuable private AI companies and a major customer for Nvidia’s chips, which power the training and deployment of large language models.

The startup has not announced plans for an IPO, but its fundraising and computing needs have fueled speculation about how it will finance future growth.

“Big Short” investor Michael Burry said in a Substack exchange in January that he was surprised that ChatGPT “kicked off a multi-trillion-dollar infrastructure race.”

“It’s like someone built a prototype robot and every business in the world started investing for a robot future,” he wrote.




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Henry Chandonnet is pictured

Sam Altman included a subtle dig at Mark Zuckerberg in his message to employees

Don’t expect to see Sam Altman lamenting the absence of “masculine energy” in corporate America to Joe Rogan anytime soon.

The OpenAI CEO sent employees a message on Slack criticizing Immigration and Customs Enforcement — and appears to have taken the opportunity to also take a subtle jab at his rival, Mark Zuckerberg.

The reference can be found where Altman wrote that OpenAI aims to “not get blown around by changing fashions.”

“We didn’t start talking about masculine corporate energy when that was popular,” Altman told employees.

Last year, Zuckerberg championed a return to masculinity at Meta on “The Joe Rogan Experience.”

“The masculine energy, I think, is good,” Zuckerberg said in the January podcast episode. “Society has plenty of that, but I think corporate culture was trying to get away from it.”

Zuckerberg described the merits of a corporate culture that “celebrates the aggression” of business.

The Meta CEO said that the intent of corporate culture’s shift away from masculinity was good. Women likely feel that companies are “too masculine,” he told Rogan, and that things are “biased” against them. But the shift had gone too far, the Facebook cofounder said.

“It’s one thing to say we want to be welcoming and make a good environment for everyone,” Zuckerberg said. “It’s another to basically say that masculinity is bad.”

Altman also wrote in his memo that OpenAI didn’t “become super woke when that was popular.”

Meta didn’t respond to Business Insider’s request for comment on Altman’s remark.

The latest in an AI rivalry

Altman and Zuckerberg are currently engaged in a talent war for top AI researchers and engineers.

Zuckerberg has attempted to poach OpenAI employees with eye-popping compensation packages, which Altman in June said included $100 million signing bonuses.

While Altman at the time said that he was happy that “at least so far, none of our best people have decided to take them up on that,” Zuckerberg successfully hired away some prominent OpenAI talent.

The Meta CEO, who even hand-delivered soup to an OpenAI employee he was attempting to poach, hired away ChatGPT co-creator Shengjia Zhao and three researchers who helped build OpenAI’s Zurich office.




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Sam Altman.

Sam Altman said OpenAI was planning to ‘dramatically slow down’ its pace of hiring


Florian Gaertner/Photothek via Getty Images

  • Sam Altman said that AI would “dramatically slow down” how quickly OpenAI hires.
  • Altman said the company will “hire more slowly but keep hiring.”
  • Altman’s comments came after a year when job growth stalled and hit young job seekers hard.

Sam Altman is addressing AI’s impact on the workforce, including on OpenAI’s hiring practices.

During a live-streamed town hall event on Monday, catered mainly toward developers, the OpenAI CEO said that AI has changed how quickly the company expands its head count, but the company is not in a hiring freeze and is nowhere close to doing away with human employees entirely.

“We are planning to dramatically slow down how quickly we grow because we think we’ll be able to do so much more with fewer people,” said Altman in response to a participant who asked if AI has changed OpenAI’s interview process of potential candidates.

“What I think we shouldn’t do, and what I hope other companies won’t do either, is hire super aggressively, then realize all of a sudden AI can do a lot of stuff, and you need fewer people, and have to have some sort of very uncomfortable conversation,” Altman added. “So I think the right approach for us will be to hire more slowly but keep hiring.”

Altman’s comments come amid the “Great Freeze” and concerns that job creation in America has lost momentum. The unemployment rate in November 2025 climbed to its highest level since 2021, while job openings have fallen 37% from their peak in 2022, according to data from the Bureau of Labor Statistics.

Business Insider previously reported that, while in 2022 there were roughly two job openings for every unemployed worker, by September 2025 that ratio had fallen to one. Workers who have been jobless for at least 27 weeks also now make up about a quarter of all unemployed Americans.

Based on data from the US Census Bureau, young workers have been hit especially hard by the hiring slowdown. The unemployment rate for Americans ages 20 to 24 reached 9.2% in August and September, the highest level since the recovery from the pandemic recession.




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The gloves are off in the feud between Sam Altman and Elon Musk

  • Sam Altman and Elon Musk escalated their long-running feud on Tuesday in a series of posts on X.
  • Each of the tech giants traded barbs about deaths and safety concerns tied to each other’s products.
  • The pair is in the middle of a lengthy legal battle over OpenAI’s status as a for-profit entity.

Sam Altman and Elon Musk are at it again, with each of the tech titans taking aim at the other in a series of heated posts on X.

Musk appeared to start the latest escalation early on Tuesday morning, when he posted “Don’t let your loved ones use ChatGPT” in response to a post that use of OpenAI’s chatbot had been linked to the deaths of children and adults since it was released in 2022.

Altman fired back, first in defense of ChatGPT and OpenAI’s desire to protect its users, and then blasting Tesla’s Autopilot technology calling it unsafe.

“It is genuinely hard; we need to protect vulnerable users, while also making sure our guardrails still allow all of our users to benefit from our tools,” Altman said.

Altman continued, calling out Autopilot.

“I only ever rode in a car using it once, some time ago, but my first thought was that it was far from a safe thing for Tesla to have released,” he wrote. “I won’t even start on some of the Grok decisions.”

Altman added: “You take ‘every accusation is a confession’ so far.”

Representatives for Musk and Altman did not immediately respond to requests for comment from Business Insider.

The social media feud comes as the pair is stuck in the middle of a long-running legal battle over OpenAI’s status as a nonprofit company. Musk sued Altman, and other leaders of OpenAI, alleging that they misled him when they decided to pursue a for-profit structure, moving the company away from its original nonprofit mission.

Musk said he donated $38 million to OpenAI when it was originally founded as a nonprofit.

This is a developing story. Check back for updates.




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