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OpenAI Lands $200 Million Pentagon Pilot Contract for Frontier AI

  • On Monday, OpenAI secured a $200 million contract from the U.S. Defense Department to create advanced AI prototypes aimed at addressing national security issues.
  • This contract follows an April White House guidance promoting a competitive AI marketplace while exempting defense and national security systems from restrictions.
  • OpenAI will develop AI tools addressing both warfighting and enterprise domains, primarily working near Washington, with completion expected by July 2026.
  • OpenAI's annualized revenue has recently climbed to $10 billion thanks to widespread AI adoption, and by the end of March, the company reported having 500 million users engaging on a weekly basis.
  • This agreement enables OpenAI to develop initial applications of advanced AI to enhance the Department of Defense’s administrative capabilities and supports its broader government-focused program.
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U.S. News broke the news in New York, United States on Monday, June 16, 2025.
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