OpenAI has secured a $200 million contract with the U.S. Department of Defense (DoD) to develop advanced artificial intelligence (AI) capabilities, with a particular focus on cyber defense and other national security applications. This marks OpenAI’s first major prime contract with the U.S. government and is the inaugural project under its new “OpenAI for Government” initiative.
Scope and Objectives
Cyber Defense: OpenAI will work with the DoD to prototype AI tools that support proactive cyber defense, aiming to strengthen the military’s ability to detect, respond to, and mitigate cyber threats. The contract also covers the use of AI to streamline administrative operations, improve healthcare delivery for service members and their families, and enhance the analysis of program and acquisition data.
The DoD describes the project as targeting both “war-fighting and enterprise domains,” meaning the technology could be applied to both frontline military operations and back-office functions.
Implementation and Oversight
Chief Digital and Artificial Intelligence Office (CDAO): The DoD’s CDAO, created in 2022 to centralize AI efforts, is the contracting authority for this project. The initial obligated funding is just under $2 million, with the full contract ceiling at $200 million, and an expected completion date of July 2026. This contract is a pilot, and OpenAI’s tools will be offered within secure, compliant environments, with all use cases required to adhere to OpenAI’s existing usage policies and guidelines. These policies prohibit the use of OpenAI’s AI for developing or using weapons, or for harming individuals or property.
Strategic Context
The initiative aims to provide AI models (including ChatGPT Gov and custom models for national security) to federal, state, and local government agencies, with hands-on support and secure deployment. This contract is seen as a significant step in accelerating the adoption of advanced AI within the U.S. government, and more partnerships with other AI companies are expected to follow.
