Sam Altman Faces Scrutiny Over OpenAI’s Defense Contracts and AI’s Impact on Labor

OpenAI CEO Sam Altman is navigating a complex public image, balancing the role of a responsible AI developer with aggressive pursuit of market dominance and partnerships with government entities. Recent meetings with lawmakers and public statements reveal growing scrutiny over OpenAI’s deepening ties with the Defense Department and the broader economic implications of artificial intelligence.

Congressional Concerns Over Defense Contracts

Sam Altman met with a group of lawmakers in Washington D.C. On Thursday, March 12, 2026, to discuss OpenAI’s work with the Defense Department. Senator Mark Kelly (D-Ariz.) expressed “serious questions” about OpenAI’s approach to warfare and its recent deal with the DOD . The discussion included detailed examination of surveillance technologies and the potential use of AI within a “kill chain,” highlighting concerns about ethical and constitutional compliance.

This meeting followed closely on the heels of OpenAI securing a deal with the DOD in late February, just hours after rival Anthropic was blacklisted by Defense Secretary Pete Hegseth, deemed a “Supply-Chain Risk to National Security” .

Altman Acknowledges AI’s Disruption of the Labor Market

At the BlackRock Infrastructure Summit, Altman acknowledged the disruptive impact of AI on the relationship between capital and labor. He noted that companies are increasingly attributing layoffs to AI, even if other market factors are at play – a phenomenon he termed “AI washing” . He suggested that AI is shifting the economy towards one of “abundance,” potentially eroding worker power as it becomes increasingly tough to “outwork a GPU.”

Altman stated that the goal is to make AI “too cheap to meter” and “flood the world with intelligence” .

Shift in OpenAI’s Military Use Policy

OpenAI reversed its ban on military use cases in January 2024, opening the door to defense contracts that are now facing political pushback . This shift has prompted debate about the ethical implications of deploying advanced AI models in national security contexts and the need for transparency and oversight.

Lawmakers are currently debating the establishment of guardrails for AI in warfare and whether commercial AI labs should be required to disclose their defense partnerships .