OpenAI Secures $200 Million Pentagon Contract for 'Frontier AI' Development

OpenAI scores $200m Defense Department AI pilot deal

DoD says deal covers 'warfighting'. OpenAI merely mentions healthcare and 'supporting proactive cyber defense' The US Department of Defense has contracted OpenAI to run a pilot program that will create "frontier AI," but it's not clear what they're building together. Evidence of the deal appeared on Monday in the Department's (DoD's) daily list of newly-awarded contracts. That document mentions an award of up to $200 million for OpenAI. According to the brief details, the AI upstart will receive $2 million immediately, with more to come. "Under this award, the performer will develop prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains," the DoD alert reads. OpenAI mentioned a deal with the DoD in a blog post that announces the launch of a larger initiative called "OpenAI for Government". As that name implies, the program aims to bring OpenAI's tech to Washington. The post also mentions the defense deal, stating it will "prototype how frontier AI can transform [the DOD's] administrative options." The post mentions outcomes such as helping service members get health care and aiding cyber defense. The word "warfighting" is conspicuously absent in OpenAI's post, which notes that use cases "must be consistent with OpenAI's usage policies and guidelines." Those policies prohibit using OpenAI technology to "develop or use weapons." The company's past policies banned "military and warfare" applications entirely, but last January it changed its wording to "Don't use our service to harm yourself or others." It's unclear if the same legalese applies to government users. We've asked OpenAI to clarify matters. For now, our best guess is: Cyber defense could certainly be useful in "warfighting," but isn't technically a weapon. The contract comes just days after OpenAI's Chief Product Officer Kevin Weil and former OpenAI Chief Revenue Officer Bob McGrew were officially sworn into the US Army Reserve as lieutenant colonels. The CTOs of Palantir and Meta did likewise and joined the newly formed Detachment 201: Executive Innovation Corps, which is advising the Pentagon on bringing AI to the military. OpenAI has previously worked on military contracts with Anduril, the defense contractor set up by Oculus founder Palmer Luckey after he was shown the door at Meta - then Facebook - reportedly for his political views. Incidentally, Meta and Anduril reunited for a different military tie-up last month. That effort will see the companies try to create some kind of augmented reality tech for soldiers after Microsoft gave up on a similar program. ®

OpenAI wins $200 million U.S. defense contract

OpenAI CEO Sam Altman speaks during the Snowflake Summit in San Francisco on June 2, 2025. 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." "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. Sam Altman, OpenAI's co-founder and CEO, said in a discussion with OpenAI board member and former National Security Agency leader Paul Nakasone at a Vanderbilt University event in April that "we have to and are proud to and really want to engage in national security areas." OpenAI did not immediately respond to a request for comment. The Defense Department said OpenAI's work on the contract will mainly happen in the National Capital Region, which encompasses 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 to build AI infrastructure in the U.S. The new contract will represent a small portion of revenue at OpenAI, which is generating over $10 billion in annualized sales. In March, the company announced a $40 billion financing round at a $300 billion valuation.

OpenAI wins $200 mn contract with US military

San Francisco (United States) (AFP) - The US Department of Defense on Monday awarded OpenAI a $200 million contract to put generative artificial intelligence (AI) to work for the military. San Francisco-based OpenAI will "develop prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains," according to the department's posting of awarded contracts. The program with the defense department is the first partnership under the startup's initiative to put AI to work in governments, according to OpenAI. OpenAI plans to show how cutting-edge AI can vastly improve administrative operations such as how service members get health care and also cyber defenses, the startup said in a post. All use of AI for the military will be consistent with OpenAI usage guidelines, according to the startup. Big tech companies are increasingly pitching their tools to the US military, among them Meta, OpenAI and, more predictably, Palantir, the AI defense company founded by Peter Thiel, the conservative tech billionaire who has played a major role in Silicon Valley's rightward shift. OpenAI and defense tech startup Anduril Industries late last year announced a partnership to develop and deploy AI solutions "for security missions." The alliance brings together OpenAI models and Anduril's military tech platform to ramp up defenses against aerial drones and other "unmanned aircraft systems", according to the companies. "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 said at the time.

OpenAI bags $200M Pentagon contract to explore defense industry AI applications - SiliconANGLE

OpenAI bags $200M Pentagon contract to explore defense industry AI applications OpenAI said today it's working with the U.S. Department of Defense on a pilot program that will see it create "frontier AI" capabilities, but it hasn't divulged exactly what it's building. The DoD confirmed the arrangement in its daily list of newly-awarded contracts on Monday, where it revealed it will award OpenAI up to $200 million for the project, with $2 million being paid up front. "Under this award, the performer will develop prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains," the DOD said in the document. OpenAI broke the news through a blog post, saying the contract is part of a larger initiative known as "OpenAI for Government", which is all about making the company's advanced artificial intelligence models available to U.S. government agencies. In the post, OpenAI says it will be working on a prototype project that aims to explore "how frontier AI can transform [the DOD's] administrative options", such as by helping service members to apply for healthcare and enhancing its cyber defense capabilities. OpenAI's blog post does not use the word "warfighting", and also points out that any applications of its technology will be consistent with its usage policies and guidelines, which prohibit it from being used to develop or control weapons systems. Still, if it can enhance the DOD's cyber defense capabilities, that would probably aid in terms of being able to wage war, without technically being a weapon. The U.S. government has shown a keen interest in applying AI technology to defense and other industries in recent months. In December, the DOD signed a $100 million contract with a company called Anduril Industries Inc., which develops hi-tech vehicles and other systems for the military. Weeks earlier, OpenAI's rival Anthropic PBC said it is working with Amazon Web Services Inc. and Palantir Technologies Inc. to supply its AI models to U.S. defense and intelligence agencies. OpenAI co-founder and Chief Executive Sam Altman told former U.S. National Security Agency chief Paul Nakasone at a public talk in April that the company is "proud to and really wants to engage in national security areas." Last week, OpenAI Chief Product Officer Kevin Weil and former Chief Revenue Officer Bob McGrew were officially sworn into the U.S. Army Reserve and given the rank of lieutenant colonel. They were joined by the Chief Technology Officers of Palantir and Meta Platforms Inc., and will work with the newly-formed Detachment 201: Executive Innovation Corps, a special unit set up to advise the U.S. government on how AI can be used by the military. OpenAI has been cultivating close ties with the government in other ways, with one of the most visible initiatives being Project Stargate, which aims to invest $500 billion in building AI computing infrastructure in the U.S.

OpenAI wins $200 million US defense contract

The work will be primarily performed in and near Washington with an estimated completion date of July 2026, the Pentagon said. OpenAI said last week that its annualised revenue run rate surged to $10 billion as of June, positioning the company to hit its full-year target amid booming AI adoption.ChatGPT maker OpenAI was awarded a $200 million contract to provide the U.S. Defense Department with artificial intelligence tools, the Pentagon said in a statement on Monday. "Under this award, the performer will develop prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains," the Pentagon said. The work will be primarily performed in and near Washington with an estimated completion date of July 2026, the Pentagon said. OpenAI said last week that its annualised revenue run rate surged to $10 billion as of June, positioning the company to hit its full-year target amid booming AI adoption. OpenAI said in March it would raise up to $40 billion in a new funding round led by SoftBank Group at a $300 billion valuation. OpenAI had 500 million weekly active users as of the end of March. The White House's Office of Management and Budget released new guidance in April directing federal agencies to ensure that the government and "the public benefit from a competitive American AI marketplace." The guidance had exempted national security and defense systems.

OpenAI Wins $200 Million US Defense Contract For AI Warfare Capabilities As The Company Looks To Raise $40 Billion - Microsoft (NASDAQ:MSFT), NVIDIA (NASDAQ:NVDA)

OpenAI has secured a $200 million defense contract to develop artificial intelligence capabilities for national security applications, according to contracts released by the Department of Defense on Monday. What Happened: The Chief Digital and Artificial Intelligence Office awarded the fixed-amount prototype agreement for "frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains," the Pentagon stated. Work will be performed primarily in the National Capital Region through July 2026. The contract represents OpenAI's largest known government deal as the company simultaneously pursues a $40 billion funding round led by SoftBank Group Corp SFTBY. Reuters reported that Saudi Arabia's Public Investment Fund and India's Reliance Industries could each contribute several hundred million dollars to the financing. OpenAI's revenue growth has accelerated dramatically, reaching a $10 billion annualized run rate in June, nearly doubling from $5.5 billion at 2024's end, according to company statements. The figure excludes Microsoft Corp. MSFT licensing revenue and one-time deals. See Also: Treasury Yields Near 5% After Soft Foreign Demand: A Red Flag For Stocks? Why It Matters: ChatGPT usage has surged to 500 million weekly active users as of March, driving the revenue expansion. The company targets $12.7 billion in 2025 revenue after posting a $5 billion loss in 2024. The defense contract coincides with OpenAI's complex $300 billion corporate restructuring into a public-benefit corporation. Delaware's attorney general is independently valuing the nonprofit parent's equity stake, while Microsoft disputes its ownership percentage in the new structure. OpenAI faces a year-end deadline to complete the restructuring or risk losing up to $20 billion from SoftBank. The funding supports AI model development and the $100 billion Stargate infrastructure project, featuring Oracle Corp. ORCL and Nvidia Corp. NVDA GB200 chips, at facilities in Texas. Read Next: Wall Street Roars Back As Iran Signals De-Escalation: Nasdaq 100 Nears All-Time High Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Svet foto / Shutterstock.com MSFTMicrosoft Corp$475.300.07%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum67.56Growth51.63Quality35.92Value13.44Price TrendShortMediumLongOverviewNVDANVIDIA Corp$143.661.19%ORCLOracle Corp$209.52-2.65%SFTBYSoftBank Group Corp$29.703.66%Market News and Data brought to you by Benzinga APIs

OpenAI wins $200 million US defense contract

WASHINGTON (Reuters) -ChatGPT maker OpenAI was awarded a $200 million contract to provide the U.S. Defense Department with artificial intelligence tools, the Pentagon said in a statement on Monday. "Under this award, the performer will develop prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains," the Pentagon said. The work will be primarily performed in and near Washington with an estimated completion date of July 2026, the Pentagon said. OpenAI said last week that its annualized revenue run rate surged to $10 billion as of June, positioning the company to hit its full-year target amid booming AI adoption. OpenAI said in March it would raise up to $40 billion in a new funding round led by SoftBank Group at a $300 billion valuation. OpenAI had 500 million weekly active users as of the end of March. The White House's Office of Management and Budget released new guidance in April directing federal agencies to ensure that the government and "the public benefit from a competitive American AI marketplace." The guidance had exempted national security and defense systems. (Reporting by Kanishka Singh in Washington; Editing by Leslie Adler)