OpenAI wins $200 million U.S. defense contract – NBC4 Washington
OpenAI has been awarded a $200 million contract to provide the U.S. Defense Department with artificial intelligence tools. The department announced the one-year contract on Monday, months after OpenAI said it would collaborate with defense technology startup Anduril to deploy advanced AI systems for "national security missions."
Contract Details
Under this award, the performer will develop prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains," the Defense Department said. It's the first contract with OpenAI listed on the Department of Defense's website.
Anduril received a $100 million defense contract in December. Weeks earlier, OpenAI rival Anthropic said it would work with Palantir and Amazon to supply its AI models to U.S. defense and intelligence agencies.
OpenAI's Vision
Sam Altman, OpenAI's co-founder and CEO, expressed the organization's commitment to engaging in national security areas. In a discussion with OpenAI board member and former National Security Agency leader Paul Nakasone at a Vanderbilt University event, Altman highlighted the importance of OpenAI's involvement.
In a blog post, OpenAI announced the launch of OpenAI for Government. This initiative includes the existing ChatGPT Gov product, providing U.S. government bodies with access to custom AI models for national security purposes.
Implications of the Contract
The $200 million contract with OpenAI Public Sector LLC aims to leverage the company's expertise to transform the Defense Department's administrative operations. From enhancing healthcare services for service members and their families to optimizing program and acquisition data analysis, the contract seeks to enhance various aspects of the department's operations.
The Defense Department specified that most of the work under this contract will take place in the National Capital Region, which includes Washington, D.C., and surrounding areas in Maryland and Virginia.
Industry Developments
OpenAI's ongoing efforts to expand computing capabilities in the U.S. were reinforced with Altman's participation in the announcement of the $500 billion Stargate project at the White House with President Donald Trump. This new contract, though a small fraction of OpenAI's revenue, represents a significant milestone for the company.
Additionally, in partnership with Microsoft, OpenAI's Azure OpenAI service has been authorized for use with secret classified information by the U.S. Defense Information Systems Agency.
For more on this news, you can watch a video on OpenAI's $10 billion in annual recurring revenue.
