The one-year contract was announced on June 16, just months after OpenAI announced it would partner with defense technology startup Anduril. This is a move to deploy advanced AI systems to serve national security tasks.
Under this contract, the implementing unit will develop advanced AI capabilities to address important national security challenges in both military and administrative fields, the US Department of Defense said. This is the first OpenAI contract listed on the department's official website.
Previously, in December, Anduril received a defensive contract worth $100 million. A few weeks later, OpenAI's rival Anthropic also announced a partnership with Palantir and Amazon to provide AI models to US intelligence and defense agencies.
Sam altman, co-founder and CEO of OpenAI, said at an event at Vanderbilt University in April: We feel proud and truly desire to participate in the field of national security.
In a post on the OpenAI blog, it said that this is the first contract in a new initiative called OpenAI for Government, which includes the current ChatGPT Gov product. The initiative is designed to provide US government agencies with access to customized AI models for national security purposes, support operations, and product roadmap orientation.
This $200 million ceiling contract helps OpenAIs leading AI product reach the Department of Defense, which would identify and model how AI can improve operations. From improving the quality of health care for soldiers and their families, to optimizing program data processing, or supporting proactive cyber defense capabilities, OpenAI said.
The majority of the work in the OpenAI Public Sector LLC contract will be done in the National Capital Region, including Washington, D.C., neighboring areas in Maryland and Virginia.
In January, Sam altman appeared with President Donald Trump at the White House to announce the $500 billion Stargate project to develop national AI infrastructure.
Despite its value, the contract still accounts for a fraction of OpenAI's total revenue - currently over $10 billion a year. In March, the company announced a $40 billion capital call round, raising its valuation to $300 billion.
In April, Microsoft - a cloud infrastructure provider for OpenAI - announced that the US Defense Information Administration has allowed the use of Azure OpenAI service to process sensitive data.
