U.S. awards OpenAI $200 million contract for AI defense capabilities

Published 16/06/2025, 22:28
© Reuters.

Investing.com -- The U.S. Department of Defense awarded OpenAI Public Sector LLC a $200 million contract to develop advanced artificial intelligence capabilities for national security purposes.

The fixed amount, prototype agreement (HQ0883-25-9-0012) tasks the San Francisco-based company with creating frontier AI systems to address critical challenges in both warfighting and enterprise domains.

Work on the project will primarily take place in the National Capital Region, with completion expected by July 2026.

The Office of the Secretary of Defense Chief Digital and Artificial Intelligence Office in Washington D.C. is overseeing the contract. The department has already obligated nearly $2 million in research, development, test and evaluation funds for the initial phase of the project.

This agreement represents a significant defense contract for OpenAI’s public sector division as the U.S. government continues to invest in advanced AI technologies for national security applications.

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