Tuesday, 17 June, 2025

OpenAI Lands $200M U.S. Defense Contract to Power “Frontier” AI Tools

OpenAI has secured a $200 million contract from the U.S. Department of Defense to develop prototype “frontier” AI tools for military, cyber defense, and administrative functions. The one-year deal—its first Pentagon contract—will run through July 2026, based in Washington, D.C. It marks OpenAI’s expansion into government services via its new “OpenAI for Government” initiative, following its policy shift to allow national security applications while banning weapon development.