OpenAI Awarded $200 Million Contract by US DoD for AI Development

OpenAI has been awarded a $200 million contract over one year by the U.S. Department of Defense to create and test advanced AI tools aimed at bolstering national security. This represents OpenAI’s first major military contract. The deal is part of OpenAI’s ‘OpenAI for Government’ initiative, which aims to provide U.S. federal agencies with specialized versions of AI models, including ChatGPT, within secure and compliant environments. The collaboration will prioritize the development of cutting-edge AI capabilities to tackle challenges in both military and administrative domains. This includes areas such as cyber defense, acquisition data analysis, and health support systems. The project will be largely based in the National Capital Region, with a projected end date in July 2026. Initial funding of $1.99 million has already been allocated from fiscal year 2025 research and development funds. OpenAI’s CEO, Sam Altman, has expressed enthusiasm for the company’s engagement in national security. This contract builds on OpenAI’s earlier work with national labs and state governments. OpenAI is now part of a growing trend of AI companies working with the Pentagon.