OpenAI Hits $25B Revenue Milestone as Anthropic Faces Pentagon Contract Crisis

OpenAI has reached a major financial milestone, generating $25 billion in annualized revenue by the end of February 2026, up from $21.4 billion at the end of 2025. The company calculates this figure by multiplying the last four weeks' revenue by 12, according to sources familiar with the numbers. This represents a 17% growth in just two months, signaling accelerating adoption of OpenAI's products and services.

Meanwhile, Anthropic finds itself in crisis mode after CEO Dario Amodei publicly criticized OpenAI's Department of Defense contract as "safety theater" in a leaked Friday memo to employees. Amodei claimed the DOD dislikes Anthropic partly because the company refuses to give "dictator-style praise to Trump," highlighting the political tensions surrounding military AI contracts.

The Pentagon dispute has escalated dramatically. Some Anthropic investors are pushing the company to de-escalate its conflict with the Department of Defense to avoid being designated as a "supply-chain risk." The designation could severely impact Anthropic's ability to do business with the US government. Sources indicate that some negotiations between Anthropic and the DOD continue, with Amodei meeting with the Pentagon's deputy to Pete Hegseth in an attempt to reach a compromise on military use of the technology.

Adding to Anthropic's troubles, reports suggest that the US military used Palantir's Maven Smart System, integrated with Anthropic's Claude model, to identify and prioritize 1,000 targets within the first 24 hours of its attack on Iran. This revelation has intensified scrutiny of Anthropic's military partnerships and raised questions about the company's ability to control how its technology is deployed.

The contrasting fortunes of these two AI giants reflect broader industry dynamics. OpenAI's rapid revenue growth demonstrates the commercial viability of large language models and the strong demand for AI tools across industries. The company is reportedly preparing for an IPO, having selected two law firms to handle the process, with a public listing potentially coming as early as Q4 2026.

Anthropic's struggles highlight the challenges of navigating the complex intersection of AI ethics, government contracts, and national security. The company's more cautious approach to military partnerships, while aligned with its stated values, appears to be costing it significant business opportunities and investor confidence.

This divergence comes as the broader AI industry faces increasing scrutiny. A recent study found that ChatGPT Health underestimated the severity of medical emergencies 51.6% of the time while overestimating severity in nonurgent cases 64.8% of the time. Such findings raise questions about the reliability of AI systems in critical applications.

The situation also reflects the growing political dimensions of AI development. OpenAI's willingness to work with the current administration contrasts sharply with Anthropic's more independent stance, illustrating how corporate strategy in the AI sector increasingly intersects with political considerations.

As OpenAI continues its revenue growth trajectory and moves toward a potential IPO, Anthropic must navigate its Pentagon crisis while maintaining its commitment to AI safety and ethical development. The outcome of this conflict could shape the future of military AI contracts and influence how other AI companies approach government partnerships.

The contrasting paths of these two companies underscore a fundamental tension in the AI industry: the balance between rapid commercial growth and careful consideration of the societal implications of powerful AI systems. As the market continues to evolve, this tension will likely define the competitive landscape and determine which approaches ultimately prevail.