US Military Awards $200 Million Contract To OpenAI

The US Department of Defense has signed a $200 million contract with OpenAI to develop generative artificial intelligence tools for military purposes, the Pentagon announced. This marks the first significant partnership between the US government and OpenAI for national security purposes.

The collaboration aims to develop prototype advanced AI capabilities to "address critical national security challenges in both warfighting and enterprise domains". While exact details remain classified, the project will reportedly enhance areas such as cyber defense, health care support for service members, and internal operations. The agreement specifies that all applications developed under the contracts will adhere to OpenAI's usage guidelines, which emphasise ethical deployment and safety.

The work under the contract is expected to be based primarily in and near Washington, with completion anticipated in 2026. This development follows a 2023 partnership between OpenAI and defense technology firm Anduril Industries. This alliance focused on deploying AI tools to strengthen defense system against aerial threats, including unmanned aircraft systems, by integrating OpenAI's models with Anduril's autonomous military technologies.

"OpenAI builds AI to benefit as many people as possible, and supports US-led efforts to ensure the technology upholds democratic values," OpenAI chief executive Sam Altman stated. Last week, OpenAI reported that its annualised revenue run rate had reached $10 billion, driven by rapid adoption of its generative AI tools across industries.