The U.S. Department of Defense on Monday awarded a $200 million contract to OpenAI to develop advanced generative artificial intelligence tools for military applications, marking a significant step in the tech company’s move into government partnerships.
According to the Pentagon’s official contract announcement, the San Francisco-based AI firm will “develop prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains.”
This marks the first defense-focused partnership under OpenAI’s initiative to bring generative AI into government services. The company said the effort will demonstrate how AI can significantly improve both operational efficiency and cybersecurity across the military.
Potential applications include streamlining administrative processes—such as how service members access healthcare—and bolstering digital defense systems.
OpenAI emphasized that all use cases under the contract will remain aligned with its usage policies, which prohibit applications such as autonomous weapons or technologies that undermine human rights.
The deal comes amid a broader push by major tech firms—including Meta, Palantir, and OpenAI—to expand their footprint in defense, a trend reflecting Silicon Valley’s growing interest in national security and military innovation.
In late 2023, OpenAI also announced a separate partnership with defense tech startup Anduril Industries to integrate its AI models into Anduril’s platforms. The collaboration aims to improve defense systems, particularly in countering aerial drones and other unmanned threats.
“OpenAI builds AI to benefit as many people as possible, and supports U.S.-led efforts to ensure the technology upholds democratic values,” OpenAI CEO Sam Altman said at the time.
The partnership with the Department of Defense further underscores OpenAI’s evolving role as both a commercial and strategic actor in the rapidly expanding defense-tech sector.
AFP