The U.S. Defense Department has awarded OpenAI a $200 million contract to deliver cutting-edge artificial intelligence tools for national security and defense operations, according to a Pentagon statement released.
Under the agreement, OpenAI will prototype frontier AI technologies to tackle critical challenges across both warfighting and enterprise domains. The project marks the first deal under a new federal program aimed at integrating advanced AI into public sector functions.
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Most of the contract’s implementation will take place in the National Capital Region, encompassing Washington, D.C., Maryland, and Virginia.
This development comes amid rapid growth for OpenAI, which recently reported a $10 billion annual revenue run rate and 500 million weekly active users. The company is also seeking to raise up to $40 billion in a funding round led by SoftBank, targeting a $300 billion valuation.
The partnership signals an important step in the White House’s broader push to ensure American dominance in the global AI landscape, as federal agencies expand access to tailored, secure AI solutions.
