OpenAI Gets Pentagon Contract as Tech Companies Eye Defense Sector -- Update
MSFT
Published on 06/16/2025 at 17:48
By Adam L. Cataldo and Katherine Hamilton
OpenAI Public Sector was awarded a $200 million contract by the Defense Department to address national security challenges, marking the latest collaboration between Silicon Valley and the Pentagon.
The San Francisco company will develop prototype frontier AI capabilities to address critical challenges in both the warfighting and enterprise domains, the Pentagon said Monday.
The contract was for work with the department's Chief Digital and Artificial Intelligence Office. Most of the work will be performed in the Washington, D.C., area, and has an estimated completion date of July 2026.
The deal comes as technology companies and the Pentagon are becoming increasingly interested in one another.
The U.S. government has been looking for cutting-edge technology to keep up with countries such as China, while the tech sector has changed its tune on defense and sees it as a potentially lucrative industry.
OpenAI in 2024 changed its policies to allow some collaborations with the military, after previously barring its AI from being used in warfare.
Also last year, OpenAI added former National Security Agency chief Paul Nakasone to its board and hired former Pentagon official Sasha Baker to create a team focused on national-security policy.
The maker of ChatGPT has secured other deals with other companies to do work for the Pentagon on cybersecurity and technology to counter drone attacks.
Chief technology officers from OpenAI, Palantir and Meta this month joined an inaugural group of a new Army innovation corps. The Army plans to call on the executives to help with short-term projects in cybersecurity, data analytics and other areas.
Write to Adam L. Cataldo at [email protected] and Katherine Hamilton at [email protected]
(END) Dow Jones Newswires
06-16-25 1948ET