OpenAI and Anthropic Feud Could Strengthen Google’s Position in AI Race

Rivalry Between OpenAI and Anthropic Creates Opportunity for Google’s Pentagon Push
OpenAI and Anthropic Feud Could Strengthen Google’s Position in AI Race
Written By:
Kelvin Munene
Reviewed By:
Manisha Sharma
Published on

Google’s widening role at the Pentagon may give it an opening in the AI race as OpenAI and Anthropic remain locked in a public dispute over defense work. While both rivals argue over military guardrails, Google is moving ahead with AI agents for unclassified Pentagon tasks, placing it in a position to gain government ground without becoming the center of the conflict.

Google Expands Pentagon Work While Rivals Face Pressure

Google is set to provide AI agents for unclassified work across the Defense Department's workforce of nearly 3 million people. The move strengthens Google’s public-sector AI presence and gives it exposure to one of the largest institutional users in the United States. Since the deployment focuses on unclassified work, Google avoids the most contested part of the military AI debate.

That matters because Anthropic and OpenAI have drawn far more scrutiny in recent days. Anthropic is challenging a Pentagon decision that labeled the company a supply chain risk to national security. OpenAI, on the other hand, has moved deeper into classified defense work after saying it reached an agreement with the Department of War that outlines how its systems can be used.

The contrast is becoming sharper. Google is advancing inside the same market while avoiding the direct political and legal clash that now surrounds its rivals. This does not remove all tension inside Google, but it does leave the company less exposed in public as the dispute grows.

Anthropic and OpenAI Feud Puts Defense AI Rules in Focus

Anthropic’s dispute with the Pentagon centers on limits tied to domestic surveillance and human control over force. In a public statement on March 5, Anthropic said it received notice of the supply chain risk designation on March 4 and would challenge the action in court. The company argues the decision is not legally sound and says it threatens both its business and the wider U.S. AI sector.

OpenAI has taken a different route. On March 2, the company said its agreement with the Department of War includes explicit red lines, including a ban on domestic mass surveillance and a requirement for human control over the use of force. OpenAI also said it expects a working group of frontier labs, cloud providers, and government officials to shape future defense AI policy.

The disagreement has drawn in employees across the industry. Reportedly 37 researchers and engineers from OpenAI and Google filed an amicus brief supporting Anthropic. Microsoft also backed Anthropic in court, arguing the Pentagon’s action could disrupt military technology support and contractor relationships.

Google’s User Growth Adds Another Competitive Advantage

Google’s timing also stands out because it is gaining momentum with users. Andreessen Horowitz, citing Yipit data from January 2026, said Claude’s paid subscriber base grew by more than 200% year over year, while Gemini grew 258%. The same dataset found that roughly 20% of weekly ChatGPT web users also used Gemini in a given week.

Those figures suggest the competitive gap remains fluid. OpenAI and Anthropic continue to shape the public debate over defense AI, yet their clash may also create room for Google to expand both commercially and inside the government. As the Pentagon dispute continues, Google appears positioned to benefit from staying focused on execution rather than confrontation. 

Also Read: Anthropic Adds Voice Mode to Claude for Hands-Free Coding

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