This story has been updated to reflect events that took place after its initial publication.
Sam Altman told OpenAI employees at an all-hands meeting on Friday afternoon that a potential agreement was emerging with the U.S. Department of War to use the startup’s AI models and tools, according to a source present at the meeting and a summary of the meeting seen by Fortune. A few hours later, Altman announced in a post on X that OpenAI and the Pentagon had reached an agreement.
