OpenAI wins $200M US Defence Pentagon deal for AI tools

ChatGPT maker OpenAI has been awarded a $200 million contract to provide the US 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.
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."
According to a blog post published by Open AI, this marks the first agreement under the new program, designed to provide federal agencies with access to tailored AI tools and ongoing support for national security and administrative applications, according to CNBC news.
The Defense Department confirmed most of the work is expected to take place in the National Capital Region, which includes Washington, DC, and parts of Maryland and Virginia.
As reported by CNBC News, OpenAI stated the collaboration will explore how advanced AI systems can streamline Defense Department operations.
Next on stage: Clemens Kerschbaum and Raphael Dachs will discuss 'Perspectives On AI Security In Defence-Critical Contexts'
They will help us understand how 'With the release of Open #AI's @ChatGPT, AI has made its way into #mainstream #technology. However, the technology shows… pic.twitter.com/F3cOleYBQh — The Defence Horizon Journal (@HorizonDefence) May 7, 2025
Potential applications range from enhancing health care access for service members and their families, to analyzing acquisition data, and bolstering cyber defense efforts.
The company emphasized that all implementations must align with its established use policies and ethical guidelines.
Earlier this year, CEO Sam Altman joined President Donald Trump at the White House to unveil the Stargate project—a $500 billion initiative aimed at dramatically increasing AI computing capacity across the country.

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