OpenAI "digitizes" the US military - 200 million USD contract to strengthen US defense
OpenAI has won a $200 million contract to provide artificial intelligence tools to the US Department of Defense.
The department announced the one-year contract, months after OpenAI said it would partner with defense technology startup Anduril to deploy advanced artificial intelligence systems for "national security missions."
"Under this award, the company will develop artificial intelligence prototypes to address critical national security challenges, both in the warfighting and enterprise domains," the Defense Department said. This is the first contract with OpenAI listed on the Defense Department's website.
Anduril won a $100 million defense contract in December. Weeks earlier, OpenAI rival Anthropic said it would work with Palantir.
Sam Altman, co-founder and CEO of OpenAI, said in April that “we are proud and truly committed to engaging in national security areas.” In a blog post, OpenAI said the contract represents the first agreement in a new initiative called OpenAI for Government, which includes the existing ChatGPT Gov product. OpenAI for Government will give U.S. government agencies access to personalized national security AI models, support, and product insights.
"This contract, with a cap of $200 million, will bring OpenAI's leading expertise to help the Department of Defense identify how technology can transform its administrative operations. These include improving the way service members receive health care, simplifying how they view program data, and supporting proactive cybersecurity defenses. All use cases must be consistent with OpenAI's policies and usage guidelines," the company said.
The Department of Defense specified that the work will be performed primarily in the National Capital Region, which includes Washington and several nearby counties in Maryland and Virginia.
Meanwhile, OpenAI is working to build additional computing power in the U.S. In January, Altman appeared alongside President Donald Trump at the White House to announce the $500 billion Stargate project. The project aims to significantly expand the U.S. artificial intelligence infrastructure.
The new contract will represent a small portion of revenue at OpenAI, which is generating over $10 billion in annual sales. In March, the company announced a $40 billion funding round at a valuation of $300 billion.
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