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OpenAI Secures $200m Contract with US Department of Defense

POSTED ON June 17, 2025 •   Metro      BY Abiodun Saheed Omodara
OpenAI

The US Department of Defense on Monday awarded OpenAI a $200 million contract to utilize generative artificial intelligence (AI) for military purposes. 

San Francisco-based OpenAI will "create prototype frontier AI capabilities to tackle essential national security issues in both combat and administrative areas," as stated in the department’s contracts announcement.

This initiative marks the first collaboration with the defense department under OpenAI's effort to implement AI in governmental operations.

OpenAI intends to demonstrate how advanced AI can significantly enhance administrative functions, including improving healthcare access for service members and strengthening cyber defenses, as noted in a recent post by the startup.

All applications of AI for military use will adhere to OpenAI's usage guidelines. Major tech firms are increasingly offering their resources to the US military, with companies such as Meta, OpenAI, and Palantir—an AI defense company co-founded by conservative tech billionaire Peter Thiel—leading the charge.

Last year, OpenAI and defense tech startup Anduril Industries announced a partnership aimed at developing and implementing AI solutions for security missions.

This collaboration combines OpenAI's models with Anduril's military technology platform to enhance defense capabilities against aerial drones and other unmanned aircraft systems.

"OpenAI creates AI to serve the broadest audience possible and supports US-led initiatives that ensure technology aligns with democratic principles," stated OpenAI's CEO, Sam Altman, at that time.

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