AI NewsOpenAI expands government footprint with AWS deal, report says

OpenAI expands government footprint with AWS deal, report says

9:10 PM IST · March 17, 2026

OpenAI signed a deal to work with Amazon Web Services (AWS) to sell its AI products to the U.S. government for classified and unclassified work,according to The Information. The partnership comes after OpenAIsigned a deal with the Pentagonto allow the military to use its AI models in its classified network — a win that came in the midst of conflict between Anthropic and the Defense Department. Anthropic has since been named a supply chain risk by the DOD after it refused to back down on allowing its tech to be used for mass surveillance of Americans and to power fully autonomous weapons. Anthropichas suedthe Pentagon in response. OpenAI’s AWS deal sees the AI giant stepping onto Anthropic’s home turf. Amazon hasinvested at least $4 billionin Anthropic, and as such,Anthropic uses AWSas its main cloud provider. Claude models are integrated into Amazon Bedrock, AWS’s AI platform for enterprise and government customers, and Claude is one of themost deeply integratedfrontier models in AWS GovCloud forpublic sector use. The tie-up also expands OpenAI’s federal footprint well beyond its Pentagon deal, positioning the company to serve multiple government agencies through AWS’s existing cloud infrastructure. AWS, a major cloud provider to U.S. agencies, has agreed to distribute OpenAI products across its public-sector customer base, The Information reported, citing sources familiar. The deal could unlock more enterprise contracts, since companies often see government contracts as a stamp of trust and reliability. OpenAI and Amazon Web Services did not immediately respond to TechCrunch’s requests for comment.