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OpenAI Lands $200 Million Defense Department Deal for Frontier AI Tools

The pilot will integrate AI into Pentagon operations as OpenAI reverses its year-old ban on military applications.

San Francisco-based OpenAI has won a $200 million one-year contract to put generative artificial intelligence (AI) to work for the military, the U.S. Department of Defense announced Monday.
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Overview

  • The US Department of Defense awarded OpenAI a one-year contract worth up to $200 million to develop prototype frontier AI capabilities.
  • The National Capital Region-based pilot will prototype AI for warfighting and enterprise domains, including administrative operations such as military healthcare and proactive cyber defense.
  • OpenAI will receive $2 million immediately, with the remaining funds contingent on successful demonstration of the prototypes.
  • The deal is OpenAI’s first direct contract with the Defense Department and the inaugural project under its new OpenAI for Government initiative following a December partnership with Anduril Industries.
  • All work will adhere to OpenAI’s usage policy, which prohibits weapon development and the use of its models to harm individuals.