OpenAI Secures $200 Million U.S. Defense Contract to Advance Military AI Capabilities

The U.S. Department of Defense has awarded OpenAI a landmark $200 million contract to harness generative artificial intelligence (AI) for critical military applications.
San Francisco-based OpenAI will develop cutting-edge AI prototypes designed to tackle pressing national security challenges across both warfighting and enterprise domains, according to the official Department of Defense contract announcement.
This partnership marks OpenAI’s first major collaboration with government agencies under its initiative to deploy AI technologies for public sector use.
The company intends to demonstrate how advanced AI can revolutionize military administrative functions—including healthcare delivery for service members—and bolster cybersecurity defenses.
OpenAI has emphasized that all military AI applications will adhere strictly to its ethical usage guidelines, reflecting a commitment to responsible AI development.
The deal underscores a broader trend of major technology firms—including Meta, Palantir, and OpenAI—offering AI solutions to the U.S. military. Palantir, known for its defense contracts, represents the established link between Silicon Valley’s emerging AI expertise and national security.
Notably, OpenAI announced a strategic partnership last year with defense technology firm Anduril Industries. Together, they aim to integrate OpenAI’s AI models with Anduril’s advanced military platforms to enhance defenses against aerial threats such as drones and other unmanned aircraft systems.
“OpenAI is dedicated to building AI that benefits as many people as possible, and we support U.S.-led efforts to ensure this technology upholds democratic values,” said OpenAI CEO Sam Altman at the time of the partnership announcement.
As AI rapidly transforms defense capabilities, this contract positions OpenAI at the forefront of the intersection between innovation and national security.