Tuesday, July 15, 2025

Pentagon Secures $200 Billion Contracts with OpenAI, Anthropic, and xAI

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The Chief Digital and Artificial Intelligence Office (CDAO) has awarded contracts worth up to $200 million each to OpenAI, Google, Anthropic, and Elon Musk’s xAI, aiming to bolster AI integration within the US Department of Defence (DoD). Announced on July 15, this initiative focuses on utilizing cutting-edge AI solutions from leading US firms to enhance mission capabilities and address national security challenges.

Doug Matty, the chief digital and AI officer, emphasized the importance of leveraging commercial AI solutions to advance warfighting, intelligence, business, and enterprise systems. The CDAO will grant access to generative AI models through the Army’s enterprise LLM workspace, powered by Ask Sage, for various military commands and the office of the defence secretary.

Additionally, the DoD is collaborating with the General Services Administration (GSA) to optimize government procurement of AI technologies, following a White House directive encouraging wider AI adoption across government agencies.

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