The United States Department of Defence has awarded OpenAI a $200 million contract to develop generative artificial intelligence (AI) solutions for military use, marking a significant step in the tech firm’s expansion into government work.
According to the Pentagon’s announcement on Monday, San Francisco-based OpenAI will create prototype frontier AI systems aimed at tackling key national security issues in both combat operations and broader military management.
The agreement represents OpenAI’s first formal collaboration with a government under its new programme to apply AI in the public sector. The company stated that its technology could greatly enhance various administrative functions, such as streamlining healthcare services for military personnel, as well as strengthening cyber defence capabilities.

OpenAI emphasised that any deployment of its AI tools within the military would adhere to its usage guidelines.
Several major technology companies, including Meta, OpenAI, and defence specialist Palantir, are increasingly offering their advanced systems to the US military. Palantir, founded by conservative tech billionaire Peter Thiel, has long been closely associated with military and national security technology.
In a related move last year, OpenAI joined forces with defence tech startup Anduril Industries to create AI solutions for security operations. The partnership combines OpenAI’s models with Anduril’s military platform to bolster defences against aerial drones and other unmanned aircraft systems.
“OpenAI builds AI to benefit as many people as possible, and supports US-led efforts to ensure the technology upholds democratic values,” OpenAI’s chief executive Sam Altman said at the time.