OpenAI Secures Pentagon Partnership While Musk’s xAI Watches From the Sidelines

OpenAI has launched a public sector initiative called OpenAI for Government, starting with a $200 million pilot contract with the U.S. Department of Defense. This initiative aims to harness AI for non-combat applications, such as enhancing healthcare and analyzing defense data. OpenAI’s policy shift permits military applications, despite previous restrictions against using ChatGPT in military contexts. The pilot, awarded through the Defense Department’s Chief Digital and Artificial Intelligence Office, will focus on optimizing non-combat tasks while adhering to OpenAI’s usage guidelines. Other federal agencies, including NASA and the National Institutes of Health, are also collaborating with OpenAI. Additionally, OpenAI is involved in a broader $500 billion public-private initiative, Stargate, aimed at AI development in the U.S. Meanwhile, xAI’s chatbot, Grok, is reportedly being used by the Department of Homeland Security to analyze data, raising concerns over potential conflicts of interest.

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