Pentagon Grants OpenAI $200 Million Contract to Enhance National Security through AI

OpenAI has secured a $200 million contract from the U.S. Department of Defense to develop artificial intelligence tools aimed at addressing national security challenges, as announced by the Pentagon on June 16. The contract will involve creating prototype AI capabilities primarily in and around Washington, with an expected completion date of July 2026. This announcement coincides with OpenAI’s rapid growth, reporting a $10 billion annualized revenue run rate and plans to raise up to $40 billion in a funding round led by SoftBank Group, aiming for a $300 billion valuation. As of March, the company had 500 million weekly active users. In April, the White House issued guidelines for federal agencies to navigate the American AI market, though it notably excluded national security and defense-related systems from these regulations.

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