Openai Bags $200 million Pentagon contract to explore defense industry applications

Openai said today it is working with the US Department of Defense on a pilot program that creates the “Frontier AI” feature, but has not revealed exactly what's in the building.

DOD confirmed the arrangement on a daily list of newly praised contracts on Monday, revealing that it will award the project with up to $200 million Openai.

“Under this award, performers will develop prototype frontier AI capabilities to address key national security challenges in both the combat and enterprise domains,” DoD said in the document.

Openai broke the news through a blog post, saying the deal is part of a larger initiative known as “Openai for Government.” In the post, Openai says, “We will be working on a prototype project aimed at exploring how Frontier AI can convert. [the DOD’s] Management options such as supporting service members in healthcare applications and strengthening cyber defense capabilities.

Openai's blog post does not use the term “Warfighting” and points out that the application of the technology is consistent with its usage policies and guidelines. Still, if DOD can improve its cyber defense capabilities, it will probably help in that it is technically not a weapon, but rather a war.

The US government has shown a strong interest in applying AI technology to defense and other industries in recent months. In December, DOD signed a $100 million contract with a company called Anduril Industries Inc. It develops high-tech vehicles and other systems for the military. A few weeks ago, Openai's rival, humanity PBC, was working with Amazon Web Services Inc. and Palantir Technologies Inc. to provide AI models to the US defense and intelligence agency.

Sam Altman, co-founder and CEO of Openai, told former US National Security Director Paul Nakasone in a public talk in April that the company is “prideful in the national security region and really wants to be involved.”

Last week, Openai's chief product officer Kevin Weil and former chief revenue officer Bob McGrew were officially sworn into the US Army Reserve and were given the rank of lieutenant colonel. They will join forces with the newly formed detachment 201: Executive Innovation Corps, joined by the Chief Technology Officer of Palantir and Meta Platforms Inc.

Openai has developed close ties with the government in other ways. One of the most visible initiatives is Project Stargate.

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