OpenAI Secures USD 200 Million Pentagon Contract for AI Development

OpenAI has been awarded a USD 200 million contract by the U.S. Department of Defense to develop artificial intelligence tools for national security applications.

The Pentagon announced the agreement on Monday, stating that OpenAI will create prototype frontier AI capabilities to address critical challenges in both warfighting and enterprise domains.

The contract highlights the growing role of AI in defence strategies, even as broader federal AI guidance exempts national security and defence systems from certain regulatory requirements.

OpenAI, the maker of ChatGPT, reported last week that its annualised revenue run rate reached USD 10 billion as of June, driven by rapid AI adoption.

In March, the company announced plans to raise up to USD 40 billion in a new funding round led by SoftBank Group, targeting a USD 300 billion valuation.

As of the end of March, OpenAI had 500 million weekly active users.

Credit: THE WHITE HOUSE

In April, the White House's Office of Management and Budget issued new guidance urging federal agencies to support a competitive American AI marketplace, though defence-related systems were excluded from the directive.

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• OpenAI awarded USD 200 million Pentagon contract for AI tools

• Project to focus on national security and enterprise applications

• OpenAI’s revenue run rate hit USD 10 billion in June

Source: REUTERS