OpenAI, the creator of ChatGPT, has secured a massive $200 million contract with the U.S. Department of Defense to develop artificial intelligence (AI) tools for national security. The Pentagon confirmed that OpenAI will create prototype AI systems to support military operations and administrative tasks across the defense sector.
According to a Pentagon statement, the project will focus on building advanced AI models that address key challenges in warfighting and enterprise domains. Most of the work will take place in the National Capital Region, covering Washington D.C., Maryland, and Virginia.
This deal is the first under a new government program that gives federal agencies access to specialized AI solutions. OpenAI stated that the partnership will explore ways to use AI to improve defense operations while following strict ethical and policy guidelines.
Meanwhile, OpenAI’s growth continues to surge. The company recently announced that its revenue run rate has hit $10 billion. Earlier this year, it revealed plans to raise $40 billion in a new funding round, valuing the company at $300 billion.
The White House has also pushed for a competitive AI market in the U.S., releasing new guidance in April. This Pentagon contract supports that vision and highlights the government’s commitment to using AI for both defense and public benefit.
In addition to national security, potential uses for OpenAI’s technology include boosting cybersecurity, improving healthcare services for military families, and analyzing defense procurement data. OpenAI’s CEO Sam Altman recently joined President Trump to launch the Stargate Project—a $500 billion plan to expand AI computing nationwide.