OpenAI wins $200 million U.S. defense contract
- On June 16, 2025, OpenAI secured a $200 million contract from the U.S. Defense Department to develop artificial intelligence tools, with most of the work expected to take place in the Washington, D.C. area.
- This contract follows White House guidance issued in April promoting a competitive American AI marketplace while exempting national security and defense systems from those rules.
- OpenAI will utilize the funding to create advanced prototype AI technologies designed to support key national defense needs across both combat operations and administrative functions.
- By March, OpenAI had reached 500 million users engaging weekly, and by June reported an annualized revenue of $10 billion; additionally, the company secured a $40 billion funding round led by SoftBank, which valued it at $300 billion.
- The contract is expected to conclude by July 2026, and the pilot program may influence how AI transforms DoD administrative operations and support service members’ healthcare and cyber defense needs.
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OpenAI Secures USD 200 Million Contract With US Defence Department To Develop AI Tools for National Security, Administrative Operations, Launches ‘OpenAI for Government’ Initiative | 📲 LatestLY
OpenAI has secured a USD 200 million contract with the US Defence Department to develop advanced AI tools for national security and administrative operations. As part of this, OpenAI has launched the 'OpenAI for Government' initiative to enhance public sector efficiency and innovation. 📲 OpenAI Secures USD 200 Million Contract With US Defence Department To Develop AI Tools for National Security, Administrative Operations, Launches ‘OpenAI for G…


OpenAI is going big into government tech
OpenAI has been given a $200 million contract with the Department of Defense.Tomohiro Ohsumi via Getty ImagesOpenAI secured a $200 million contract with the US Department of Defense to develop AI tools.The contract is OpenAI's first official defense deal, following prior government collaborations.Analysts say OpenAI's contract is among the largest for a software provider by annual value.OpenAI is amping up its collaboration with the US governmen…
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