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OpenAI Secures $200 Million Defense Department Contract to Develop Frontier AI

This award launches OpenAI’s first official defense partnership under the OpenAI for Government program, charging it with delivering prototype AI systems by July 2026.

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 Department of Defense awarded OpenAI a $200 million, one-year contract on June 16 to prototype frontier AI tools for critical national security challenges.
  • Under the award, OpenAI will develop AI systems for both warfighting support and enterprise operations, including improving healthcare access for service members and bolstering proactive cyber defense.
  • The deal provides $2 million upfront with work centered in the Washington, D.C., area and completion slated for July 2026, contingent on pilot success.
  • This marks OpenAI’s first official defense partnership under its OpenAI for Government program, which consolidates the company’s federal collaborations from NASA to Anduril Industries.
  • Rival AI developers such as Anthropic, Meta and Palantir are also vying for military AI work as the Pentagon seeks to harness generative AI across its operations.