OpenAI, the company behind ChatGPT, is facing mounting backlash after reports revealed that U.S. uninstalls for the AI chatbot surged 295% following news of a partnership with the Department of Defense (DoD). The spike reflects growing public concern over the AI company’s expanding military ties and the ethical implications. At the same time, the controversy has coincided with heightened user interest in competitors, including Anthropic’s Claude, which has seen a notable rise in engagement.
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Trade NVDA with leverageOpenAI Pentagon Deal Sparks 295% ChatGPT Uninstall Spike
In a Feb. 27 announcement, OpenAI confirmed a deal with the DoD, recently rebranded by the Trump administration as the Department of War (DoW), to deploy its advanced AI models within classified military networks. Under the terms of the agreement, the Pentagon may integrate OpenAI’s technology for select defense applications, provided that human oversight is maintained in all use-of-force scenarios.
OpenAI stated that restrictions will be enforced through cloud-only deployment, its internal safety systems, and on-site company personnel. Following the public disclosure of the deal, the private company faced criticism from technology and privacy advocates. According to app intelligence firm Sensor Tower, U.S. ChatGPT uninstalls surged 295% day-over-day on February 28, far exceeding the typical 9% daily rate observed over the previous month.
Downloads also declined, falling 13% that Saturday and an additional 5% on Sunday. User sentiment further deteriorated, with one-star reviews rising 775% and five-star ratings dropping by 50%. In response, OpenAI CEO Sam Altman defended the agreement on X, noting that the DoW “demonstrated a deep respect for safety” and had agreed to OpenAI’s core principles. He emphasized that AI safety and the broad distribution of benefits remain central to OpenAI’s mission.
Anthropics Claude Capitalizes on OpenAI Backlash
The uproar over OpenAI’s Pentagon deal has intensified debates over AI’s role in military applications, with critics warning that even stated safeguards cannot fully prevent risks from surveillance creep or unsafe autonomy. Meanwhile, OpenAI’s competitor Anthropic’s Claude chatbot has benefited from the backlash.
CEO Dario Amodei had previously rejected comparable DoW terms, stating, “We cannot in good conscience accede to these demands,” citing concerns over potential misuse and expansion of surveillance capabilities.
As a result, Claude downloads surged 37% on Feb. 27 and 51% the following day, propelling it to No. 1 in the U.S. App Store rankings. Similarweb reported that weekly U.S. rankings jumped more than 20 spots compared with the previous week, largely driven by social media support for Anthropic’s principled stance.
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OpenAI has not set a firm initial public offering (IPO) date, but the privately held company is widely anticipated to go public in the coming years, alongside competitors such as Anthropic. Investors interested in AI stocks can choose from several publicly traded options. TipRanks Stocks Comparison tool for Best Artificial Intelligence Stocks shows “Strong Buy” ratings for Microsoft (MSFT), Apple (APPL), Google (GOOGL), Meta (META), and Nvidia (NVDA).
