OpenAI Secures $200 Million AI Contract with U.S. Defense Department
The U.S. Department of Defense has awarded a $200 million contract to OpenAI, the maker of ChatGPT, to build cutting edge artificial intelligence (AI) tools for national security challenges that relate to military operations. The Pentagon announced news of the one year deal for OpenAI to work on military AI challenges on June 16, 2025. OpenAI will mainly be working at their office near Washington, D.C., for milestones that are expected to extend through July 2026.
The U.S. Department of Defense awarded OpenAI a $200 million contract. The contract states that the project is focused on making prototype frontier AI technologies for critical national security challenges. The awarding is made to a robot maker in the face of growing U.S. push to invest in defense-related AIs and secure a leadership position in defense-related AI systems.
The U.S. Department of Defense disclosed the OpenAI contract on Monday. The length of the project it mentioned on its landing page is one year but there could be multiple phases. The scope of the projects aims to include exploration on how AI can provide assistance with a range of tasks, including improving access to health care for military members and improving cybersecurity. OpenAI said this is the first major effort under the OpenAI for Government label.
OpenAI for Government combines all of OpenAI’s federal collaborations, which reportedly include ChatGPT Gov — a version of its chatbot limited for government users — as well as other partner organizations such as NASA, the National Institutes of Health, Air Force Research Laboratory, and the Treasury Department.
Significance
- The contract showcases the deepening ties between tech firms and defense institutions.
- Marks OpenAI’s entry into national security AI systems, signaling a shift beyond commercial use.
- Reinforces U.S. strategic goals of AI dominance in defense, security, and intelligence.