OpenAI Secures $200 Million Contract to Create AI Models for the Pentagon

OpenAI recently secured a $200 million, one-year contract from the U.S. Department of Defense to develop advanced AI capabilities aimed at addressing key national security challenges. The contract, awarded to OpenAI Public Sector LLC, represents a small fraction of the company’s substantial revenue, which exceeds $10 billion annually. Earlier this year, OpenAI raised $40 billion in financing, boosting its valuation to $300 billion. Microsoft, a key partner providing cloud infrastructure, has also received clearance to use the Azure OpenAI service with classified data. OpenAI is collaborating with defense tech startup Anduril to enhance AI systems for national security. Additionally, the company is focused on building further AI infrastructure in the U.S. as part of the $500 billion Stargate project. Looking ahead to 2024, rival Anthropic plans partnerships with Palantir and Amazon to deliver AI models to defense and intelligence agencies.

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