OpenAI's Department of Defense Partnership Backfires – ChatGPT Dethroned as Claude Tops US App Charts

Claude has surged to the top of the US App Charts, dethroning OpenAI's ChatGPT, as backlash intensifies over OpenAI's partnership with the US Department of Defense. The move follows OpenAI stepping in to replace Anthropic on a deal worth up to £149.7 million ($200 million) after the rival firm refused terms lacking safeguards against mass surveillance and autonomous weapons.

Sensor Tower data reveals ChatGPT uninstalls in the US jumped 295% the day after the announcement, with downloads down 13% and one-star reviews soaring 775%.

The Pentagon Dispute

The controversy erupted when Anthropic, developer of Claude, balked at demands from the Department of Defense—renamed the Department of War under President Trump—to drop restrictions on using its AI for domestic mass surveillance or fully autonomous weapons systems.

CEO Dario Amodei faced an ultimatum from Defense Secretary Pete Hegseth: comply by a Friday deadline or be labelled a supply chain risk, barring federal contractors from its tech. Anthropic held firm, prompting a government-wide ban on its tools and a six-month phase-out for existing use in military systems.

The designation, typically reserved for foreign adversaries, drew criticism from tech workers at OpenAI and Google, who signed open letters urging Congress to intervene and questioning the unprecedented pressure on a US firm. Anthropic vowed to challenge the label in court, arguing it overstepped statutory limits and threatened democratic values by potentially forcing compliance on ethical red lines.

Hours later, OpenAI filled the gap with its own agreement to deploy models on classified networks, initially claiming alignment with safety principles like human oversight on force and no surveillance loopholes. Critics noted the timing, coinciding with US strikes on Iran, hardly seemed coincidental.

User Backlash and App Rankings Shift

Social media erupted with calls to 'cancel ChatGPT', fuelling a swift user exodus. Uninstalls averaged 9% day-over-day in the prior month but spiked 295% on Saturday, per Sensor Tower. Downloads, up 14% the previous day, plummeted 13% post-announcement and fell another 5% on Sunday. Five-star reviews halved amid the furore.

Claude, meanwhile, rocketed from outside the top 100 in late January to number one by Saturday, holding firm through Tuesday. Anthropic saw record sign-ups daily, with free users rising over 60% since January. Google's Gemini lagged in fourth, underscoring how ethics debates can reshape AI app dominance overnight.

The surge reflected values-driven switching, as users praised Anthropic's stance on safeguards. Google's Gemini lagged in fourth, underscoring how ethics debates can reshape AI app dominance overnight, with Claude briefly outpacing ChatGPT in US downloads for the first time.

OpenAI's Contract Revisions

Facing criticism, OpenAI amended the deal to explicitly bar intentional domestic surveillance of US persons, including via commercially acquired data. It also secured confirmation that services would bypass intelligence agencies like the NSA without separate approval.

In an X post, CEO Sam Altman conceded the original rollout was 'rushed', appearing 'opportunistic and sloppy'.

OpenAI pushed for the DoD to extend identical terms to competitors, including Anthropic, to de-escalate tensions. As of 6 March 2026, Claude tops US App Charts while ChatGPT sits second, signalling user priorities on AI safeguards may endure. The saga highlights potential long-term costs for firms prioritising speed over scrutiny in sensitive partnerships.