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OpenAI lands $200mln US defense contract for AI government tools

  • By Al Mayadeen English
  • Source: News websites
  • 17 Jun 2025 08:58
3 Min Read

OpenAI launches ‘OpenAI for Government’ with a $200 million Pentagon deal to develop AI solutions for military administration, cybersecurity, and national security tasks.

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  • The OpenAI logo is seen on a mobile phone in front of a computer screen which displays output from ChatGPT, March 21, 2023, in Boston. (AP)
    The OpenAI logo is seen on a mobile phone in front of a computer screen that displays output from ChatGPT, March 21, 2023, in Boston. (AP)

OpenAI has been awarded a $200 million contract by the US Department of Defense for a one-year pilot program to explore the use of artificial intelligence in military and administrative applications. The deal, disclosed by the Pentagon on Monday, marks a significant expansion of the ChatGPT developer’s role in supporting government operations through advanced AI tools.

The contract aims to assist the US military in adopting AI for various tasks, ranging from streamlining healthcare access for service members to enhancing cybersecurity infrastructure. The move signals Washington’s continued interest in integrating commercial AI innovations into national security strategies.

In a blog post published Monday, OpenAI announced that the Pentagon agreement is the inaugural project under its newly launched division, OpenAI for Government. This internal entity will serve as the central hub for all of OpenAI’s work with US federal agencies.

The company said the new unit will encompass efforts like ChatGPT Gov, a tailored version of its AI model designed for use by government employees. Other ongoing collaborations include work with NASA, the National Institutes of Health, the Treasury Department, and the Air Force Research Laboratory.

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Focus on administrative support, cyber defense

According to OpenAI, the pilot program will primarily explore how AI can assist with routine but vital bureaucratic tasks, such as processing medical care for military personnel, while also examining AI’s role in mitigating cyber threats.

The announcement comes amid broader efforts to define the role of artificial intelligence within US defense policy. While OpenAI has stated its commitment to building technology that upholds democratic values, the company's growing involvement with the military has sparked debate over ethical boundaries and transparency.

In addition to its Pentagon contract, OpenAI confirmed last year that it had entered into a partnership with weapons manufacturer Anduril Industries to co-develop AI-powered anti-drone systems. The partnership underlines the company's expanding footprint in defense-related AI initiatives.

To further its national security agenda, OpenAI has also brought on former high-ranking defense officials. A former top Pentagon leader now heads its national security policy unit, and the former chief of the National Security Agency recently joined the company's board.

As OpenAI deepens its ties with US government agencies, its latest move reflects a shift toward formalizing its role in shaping the future of AI in national defense and public service.

  • US department of Defense
  • US National Security
  • openAI
  • US
  • AI Pentagon Deal
  • Cybersecurity

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