OpenAI Awarded $200 Million U.S. Defense Contract for AI Development
OpenAI, the creator of ChatGPT, has secured a $200 million contract to develop advanced artificial intelligence tools for the U.S. Department of Defense, the Pentagon announced on Monday.
The contract involves creating prototype frontier AI capabilities aimed at tackling critical national security challenges across both warfighting and enterprise domains. The work will mainly take place in and around Washington, with an expected completion date set for July 2026.
OpenAI recently reported a surge in its annualized revenue run rate to $10 billion as of June, fueled by widespread AI adoption. Earlier this year, in March, OpenAI revealed plans to raise up to $40 billion in a funding round led by SoftBank Group, valuing the company at around $300 billion. The firm also reported having 500 million weekly active users by the end of March.
Separately, the White House’s Office of Management and Budget issued new guidance in April encouraging federal agencies to foster a competitive American AI marketplace, while exempting national security and defense systems from some regulations.