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Pentagon Hands OpenAI $200M to Supercharge War AI -- Is This the Next Palantir?
Pentagon Hands OpenAI $200M to Supercharge War AI -- Is This the Next Palantir?

Yahoo

time3 days ago

  • Business
  • Yahoo

Pentagon Hands OpenAI $200M to Supercharge War AI -- Is This the Next Palantir?

OpenAI, the company behind ChatGPT, just secured a $200 million contract with the U.S. Department of Defense to prototype frontier AI systems for critical national security use cases. According to the Pentagon, the deal covers both warfighting and enterprise domains, with most of the work centered in Washington and running through July 2026. While this isn't OpenAI's first government partnership, it's their most significant by farbringing their tech deeper into defense, at a time when U.S. officials are actively reshaping procurement strategy to prioritize homegrown AI solutions. Warning! GuruFocus has detected 10 Warning Signs with SFTBF. The deal is the first major partnership under OpenAI for Government, the company's newly launched initiative to bring advanced AI tools like ChatGPT Enterprise and ChatGPT Gov to public sector agencies. The Defense pilot will explore AI applications ranging from proactive cyber defense to streamlining healthcare access for military families and analyzing acquisition data. These systems will be deployed in secure, policy-compliant environments, with customized support from OpenAI's team. Existing collaborationswith NASA, NIH, the Treasury, and national labsare also being pulled under this new umbrella, indicating a broader, more coordinated push into the federal AI stack. Momentum is building on the business side as well. OpenAI recently revealed its annualized revenue run rate has reached $10 billion, fueled by enterprise and institutional adoption. At the same time, it's exploring a $40 billion funding roundled by SoftBank (SFTBF)at a potential $300 billion valuation. The timing of this government expansion could give OpenAI a sticky, high-margin customer base in a regulated space with strong budget resilience. For investors watching the emerging AI platform race, this might be the clearest sign yet that OpenAI isn't just chasing consumer hypeit's quietly building the infrastructure layer for U.S. institutions. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

The Pentagon wants smarter tools, so it called ChatGPT's creator
The Pentagon wants smarter tools, so it called ChatGPT's creator

Phone Arena

time5 days ago

  • Business
  • Phone Arena

The Pentagon wants smarter tools, so it called ChatGPT's creator

AI in the public sector isn't exactly breaking news anymore – earlier this year, OpenAI launched a special version of ChatGPT made just for US government agencies. And now, the company's doubling down on that push with something even bigger: a new initiative called OpenAI for Government, which just landed it a major contract with none other than the Pentagon. Yep, OpenAI is officially working with the Department of Defense. The DoD just announced a $200 million contract with the company to develop cutting-edge AI tools, including ones aimed at proactive cyber defense. It is the first-ever deal between OpenAI and the DoD and it will run for a year, focusing mostly on operations in and around Washington, D.C., Maryland, and Virginia. As part of this initiative, OpenAI will offer federal, state and local agencies access to tools like ChatGPT Enterprise and ChatGPT Gov, plus limited access to custom AI models built for national security use cases. The DoD says the goal here is to develop prototype AI capabilities to address major national security challenges, both on the battlefield and across broader operational systems. – OpenAI, June 16, 2025 That last part is key. OpenAI made it clear that any government use of its models still has to follow its strict policies – meaning no weapon development or any use intended to harm people or destroy property. And let's hope that is indeed the case. Actually, OpenAI isn't the only one getting involved with military AI. Rival company Anthropic just revealed a model with more relaxed guardrails designed specifically for US defense and intel agencies. Even Meta (yep, Mark Zuckerberg's crew) jumped in last year, allowing the government to use its Llama AI model for national security purposes. And with Trump's One Big Beautiful Bill set to remove most restrictions on AI development over the next decade, the pace of innovation could speed up fast – maybe too fast. And honestly, that's a bit concerning. When the brakes come off, the rules often shift, too and in the world of powerful AI tools tied to national security, that's something to keep a very close eye on.

OpenAI awarded $200 million US defense contract for the use of its AI models
OpenAI awarded $200 million US defense contract for the use of its AI models

Engadget

time5 days ago

  • Business
  • Engadget

OpenAI awarded $200 million US defense contract for the use of its AI models

OpenAI has just launched an initiative called OpenAI For Government starting with a modest new contract. The company was awarded $200 million by the US Department of Defense (DoD) to develop "prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains," according to the DoD's website. The contract is the DoD's first with OpenAI. It will last a year and take place largely in an area that includes Washington, DC and nearby counties in Maryland and Virginia. The company said its new program will provide federal, state and local governments access to its latest models through ChatGPT Enterprise and ChatGPT Gov, along with custom models for national security on a limited basis. "This contract, with a $200 million ceiling, will bring OpenAI's industry-leading expertise to help the Defense Department identify and prototype how frontier AI can transform its administrative operations, from improving how service members and their families get health care, to streamlining how they look at program and acquisition data, to supporting proactive cyber defense,' the company said. Last last year, OpenAI announced that it was partnering with Palmer Lucky's defense startup Anduril Industries to develop AI for the Pentagon. The companies said they aimed to combine OpenAI's models, including GPT-4o, with Anduril's systems and software to improve the US military's defenses against unpiloted aerial attacks. However, OpenAI and the DoD didn't reference Anduril or drone defense in their announcements today. The contract opens up a new source of revenue for OpenAI. The company recently said that it will increase sales from around $10 billion currently all the way to $125 billion in just four years, without providing many details on how it plans to do that. Currently, OpenAI makes money from ChatGPT for consumers, along with business products and its application programming interface (API). It spends a lot more than it makes, having lost $5 billion in 2024 on around $4 billion in revenue. In January, OpenAI announced the $500 billion Stargate program to develop additional computing power in the US. The company completed a $40 billion financing round that values it currently at over $300 billion. However, critics have argued that that despite burning enormous amounts of cash on cloud infrastructure, it still has no clear path to profitability. Relations are also reportedly tense with the company's close partner Microsoft at the moment.

OpenAI wins $200 mn contract with Pentagon to pilot AI for defence tasks
OpenAI wins $200 mn contract with Pentagon to pilot AI for defence tasks

Business Standard

time5 days ago

  • Business
  • Business Standard

OpenAI wins $200 mn contract with Pentagon to pilot AI for defence tasks

OpenAI will work with the Defense Department to come up with ways that AI can help with administrative tasks, such as getting health care for US military members and helping prevent cyberattacks Bloomberg OpenAI has won a $200 million contract for a pilot program aimed at helping the US Defense Department determine how it could use artificial intelligence for a range of administrative and security tasks. The one-year contract, which the Defense Department disclosed Monday, is the latest push by the ChatGPT-maker to sell its technology to the US government. As part of the effort, OpenAI will work with the Defense Department to come up with ways that AI can help with administrative tasks, such as getting health care for US military members and helping prevent cyberattacks. OpenAI for Government consolidates all of OpenAI's existing government projects in one area of the company, including ChatGPT Gov — a version of ChatGPT meant for government workers — as well as its work with Nasa, the National Institutes of Health, the Air Force Research Laboratory and the Treasury Department. The company also said late last year that it would partner with weapons maker Anduril Industries Inc. to build AI for anti-drone systems, in another sign of its expanding work with the US government, particularly around national security. In recent months, OpenAI has said that it plans to build out AI tools that uphold democratic values. The AI startup has also brought in a former top Pentagon official to lead its national security policy team and added the former head of the National Security Agency to its board.

OpenAI snags $256 million contract with US Defence Department
OpenAI snags $256 million contract with US Defence Department

Straits Times

time5 days ago

  • Business
  • Straits Times

OpenAI snags $256 million contract with US Defence Department

OpenAI's pilot programme is aimed at helping the US Defence Department determine how it could use AI for tasks. FILE PHOTO: REUTERS WASHINGTON – OpenAI has won a US$200 million (S$256.3 million) contract for a pilot programme aimed at helping the US Defence Department determine how it could use artificial intelligence for a range of administrative and security tasks. The one-year contract, which the Defence Department disclosed on June 16 , is the latest push by the ChatGPT-maker to sell its technology to the US government. In a blog post on June 16 , OpenAI said the contract is the company's first project under a new entity it's calling OpenAI for Government. As part of the effort, OpenAI will work with the Defence Department to come up with ways that AI can help with administrative tasks, such as getting health care for US military members and helping prevent cyberattacks. OpenAI for Government consolidates all of OpenAI's existing government projects in one area of the company, including ChatGPT Gov – a version of ChatGPT meant for government workers – as well as its work with Nasa, the National Institutes of Health, the Air Force Research Laboratory and the Treasury Department. The company also said late last year that it would partner with weapons maker Anduril Industries Inc. to build AI for anti-drone systems, in another sign of its expanding work with the US government, particularly around national security. In recent months, OpenAI has said that it plans to build out AI tools that uphold democratic values. The AI startup has also brought in a former top Pentagon official to lead its national security policy team and added the former head of the National Security Agency to its board. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.

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