OpenAI Signs $200M Pentagon Deal to Develop Defense-Applied AI | Chat OpenAI | OpenAI free | ChatGPT 4 | Turtles AI

OpenAI has been awarded a $200 million contract by the U.S. Department of Defense to develop advanced AI prototypes for both operational and government purposes as part of the new “OpenAI for Government” initiative.

Key Points:

• First formal contract with the Pentagon under “OpenAI for Government.”
• Towards AI prototypes for warfare and business functions.
• Involvement in military cyber and healthcare.
• Existing collaboration with Anduril for drone defense.

OpenAI, based in San Francisco and founded by Sam Altman, has been awarded a contract worth up to $200 million by the U.S. Department of Defense. The one-year contract, expiring in July 2026, calls for the development of “frontier” AI prototypes to address critical warfare and government challenges. Most of the work will take place in the National Capital Region, around Washington, D.C.

The project marks the launch of “OpenAI for Government,” a new line dedicated to supporting U.S. federal, state, and local governments. Initial goals include military healthcare assistance, proactive cyber defense, and improved program acquisition and management processes. The Department evaluated twelve proposals during the award phase, and just under $2 million has already been formally committed at the time of the contract.

This is a turning point for OpenAI: until early 2024, company policy explicitly prohibited military and warfare use, a restriction that was then revoked in January 2024. In 2024, the startup had formed an alliance with Anduril Industries — founded by Palmer Luckey — to enhance defense systems against unarmed drones (CUAS), a field in which Anduril boasts sensors and autonomous platforms.

OpenAI guarantees that the military use of its AI will comply with its guidelines, which prohibit offensive applications and weapons development — while remaining focused on protecting personnel and supporting democratic values. The Pentagon initiative will be managed by the CDAO (Chief Digital & AI Officer) office, which coordinates AI initiatives across the defense sector, an allocation that strengthens its internal credibility.

The contract is part of a broader context: OpenAI has an estimated annual revenue of 10 billion dollars and is evaluating a capital increase of up to 40 billion, with a valuation of about 300 billion dollars. Other big tech companies such as Anthropic, Google, Meta are also strengthening their collaborations in the defense and government sectors.

Financial analysts note that the value of the contract is among the largest ever awarded to a software vendor in the defense sector, with the ability to compete with established companies such as Palantir.

Finally, OpenAI has already launched state pilot programs – for example in Pennsylvania – where the integration of ChatGPT has allowed a reduction of about 105 minutes per day in repetitive activities of public employees.

This partnership marks the concrete entry of OpenAI into the defense sector, suggesting a new phase in which advanced AI is also inserted into the most delicate government apparatuses.