OpenAI Faces Backlash Over DoD Deal as Users Flee to Claude

Published on: March 3, 2026, 7:54 AM EST

OpenAI is facing a sharp user backlash after announcing a partnership with the US Department of Defense, triggering a surge in ChatGPT uninstalls and a spike in downloads for rival app Claude.

Quick Summary – TLDR:

ChatGPT uninstalls in the US jumped 295 percent day over day after the DoD deal announcement.
One star reviews surged 775 percent as users voiced frustration.
Claude downloads rose as much as 51 percent, hitting No 1 on the US App Store.
Sam Altman admitted he “shouldn’t have rushed” the Pentagon agreement.

What Happened?

OpenAI’s recent agreement with the US Department of Defense, reportedly renamed the Department of War under President Donald Trump, has triggered widespread backlash among American users. Within days of the announcement, thousands began deleting the ChatGPT app and cancelling subscriptions, while competitor Anthropic’s Claude gained momentum.

Data from market intelligence firms including Sensor Tower, Similarweb, and Appfigures show a dramatic shift in user behavior almost overnight.

BREAKING: ChatGPT continues to lose market share

>openai sell out to literal department of war
>295% uninstall surge in ONE DAY
>1-star reviews up 775%
>5-stars down 50%

>meanwhile anthropic says “no”
>claude downloads up 81%
>passes chatgpt in downloads
>hits #1 on app store… https://t.co/wVCmpv6J0I pic.twitter.com/1XW5d5RlLT
— NIK (@ns123abc) March 3, 2026

Uninstalls Surge as Ratings Collapse

The numbers tell a stark story. According to Sensor Tower, ChatGPT mobile app uninstalls in the US soared 295 percent day over day on February 28, far above its typical 9 percent daily uninstall rate over the past month.

At the same time, downloads began to slide. US downloads fell 13 percent on Saturday and another 5 percent on Sunday, reversing a 14 percent growth spike just before the news broke.

User frustration also spilled into app reviews. One star ratings jumped 775 percent on Saturday, followed by another 100 percent rise on Sunday. Meanwhile, five star ratings dropped by roughly half during the same period.

Online, “cancel ChatGPT” trended across Reddit and X over the weekend. One boycott website claims that more than 1.5 million users cancelled their subscriptions, though that figure has not been independently verified.

Some critics pointed to OpenAI CEO Sam Altman’s acceptance of the Pentagon deal, as well as other political associations, including reported donations and collaborations linked to the Trump administration. These concerns appear to have fueled distrust among a segment of users.

Claude Climbs to the Top

While OpenAI faced mounting criticism, Anthropic’s Claude capitalized on the moment.

The company declined to partner with the US defense department, citing concerns that artificial intelligence could be used for surveillance of Americans or autonomous weapons systems. Anthropic leadership argued that current AI models are not safe enough for such applications.

The stance resonated. Sensor Tower data shows Claude downloads in the US rose 37 percent on February 27 and another 51 percent the following day. Separate figures from Appfigures indicate an even steeper 88 percent daily increase at one point.

By Saturday, Claude had climbed more than 20 positions to become the No 1 free app on Apple’s US App Store. The app also topped free charts in countries including Belgium, Canada, Germany, Luxembourg, Norway, and Switzerland. Similarweb reports that Claude’s weekly US downloads are now roughly 20 times higher than in January, though it notes that broader interest in Anthropic’s tools may also be contributing.

Anthropic said internally that its free user base grew by more than 60 percent during the surge.

Altman Responds

Facing criticism, Sam Altman acknowledged missteps in the rollout.

He wrote that he “shouldn’t have rushed to the deadline on Friday.”

Altman wrote:

“

The issues are super complex and demand clear communication. We were genuinely trying to de-escalate things and avoid a much worse outcome, but I think it just looked opportunistic and sloppy. Good learning experience for me as we face higher-stakes decisions in the future.

Altman also reassured users that the deal includes “prohibitions on domestic mass surveillance” and maintains “human responsibility for the use of force, including for autonomous weapon systems.” He later said OpenAI updated its contract with the Pentagon to ensure its principles remain clear and not used for harmful purposes.

“

The democratic process must stay in control, and we must democratize AI. OpenAI should not decide the fate of the world; no private company should. We need to work with governments, but also we need to make sure individuals get increasing power.

SQ Magazine’s Takeaway

I think this moment shows just how sensitive people are about AI and military involvement. Users are not just downloading apps anymore, they are voting with them. A 295 percent uninstall spike is not normal churn. It signals trust issues.

At the same time, Claude’s rise proves that ethics can become a competitive advantage in the AI race. Whether this shift is temporary outrage or a long term brand shift remains to be seen, but one thing is clear: in today’s AI economy, public perception can move markets overnight.