Pentagon Selects OpenAI for New Pioneering $200M AI Pilot
OpenAI has won a contract worth up to $200 million with the United States Department of Defence , a deal that both sides say will accelerate the introduction of frontier artificial intelligence across the Pentagon’s sprawling bureaucracy and front-line units. The award, announced on Monday, positions the San-Francisco company ahead of larger cloud and defence rivals in a fast-moving contest to supply generative AI tools to the government. The two-year agreement is structured as an “other transaction” prototype, overseen by the Chief Digital and Artificial Intelligence Office. Just under $2 million is committed immediately, with the full ceiling payable if the pilot delivers and scales before its scheduled completion in July 2026. Work will be carried out primarily in Washington, D.C., and surrounding military installations. Early indications suggest the pilot will become the flagship project of “OpenAI for Government”, a new internal initiative unveiled alongside the...