OpenAI Lands $200M Pentagon Contract for AI Tools

The US Department of Defense has awarded a $200 million contract to OpenAI, a leading artificial intelligence firm, to develop and provide advanced AI tools for proactive cyber defense and administrative operations.

OpenAI will use its expertise to help the Defense Department identify and prototype how frontier AI can improve healthcare services, streamline data analysis, and support cybersecurity. The company’s technology will be used across federal, state, and local governments under a new initiative aimed at expanding access to its AI solutions.

The contract marks OpenAI’s first partnership with the DoD, which has removed earlier restrictions on the use of its technology for military purposes. This move comes as several other major tech companies are easing their own AI-related restrictions for US defense and intelligence agencies.

OpenAI’s partnership with Anduril Industries to integrate its AI software into counterdrone systems in December 2024 was seen as a test run, paving the way for this new contract. The company has said it will develop custom models for national security on a limited basis, subject to its policies and guidelines that prohibit the development or use of weapons.

Source: https://www.theverge.com/news/688041/openai-us-defense-department-200-million-contract