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37m ago

OpenAI Secures $200 Million U.S. Defense Department Contract for Frontier AI Capabilities

The award builds on its collaboration with defense startup Anduril following the January Stargate AI infrastructure announcement.

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Sam Altman-led OpenAI winning its first contract from the US Department of Defense comes as big tech firms increasingly court the US military

Overview

  • Under the one-year, $200 million agreement, OpenAI Public Sector LLC will develop prototype frontier AI systems to address warfighting and enterprise challenges in the National Capital Region
  • This marks OpenAI’s first Department of Defense contract listed on the agency’s website and signals its entry into national security work
  • The deal follows the company’s December partnership with defense startup Anduril to deploy advanced AI for security missions
  • It coincides with OpenAI’s $500 billion Stargate project launched in January and a $40 billion financing round that valued the company at $300 billion
  • Though the contract represents a small portion of OpenAI’s over $10 billion in annualized revenue, it underscores emerging ethical and oversight questions around AI use in defense