OpenAI has officially secured a position with the U.S. Department of Defense, having been awarded a $200 million contract to develop new artificial intelligence tools aimed at enhancing national security, particularly in proactive cyber defense.
In a recent announcement detailing its latest contracts, the Department of Defense stated that OpenAI will create prototype AI capabilities intended to tackle significant national security challenges across both military and administrative sectors. Most of the work will take place in the Washington, D.C. area, with an expected completion date set for July 2026.
In a blog post, OpenAI revealed that this contract marks the beginning of its partnership initiative to supply AI technology to various governmental layers, including federal, state, and local agencies. The company plans to provide tailored models for national security on a limited basis, ensuring that all applications adhere to its established policies and guidelines. Notably, OpenAI’s usage policy currently prohibits its technology from being utilized to develop weapons or harm individuals or property.
“This contract, with a $200 million ceiling, will bring OpenAI’s industry-leading expertise to help the Defense Department identify and prototype how frontier AI can transform its administrative operations, from improving how service members and their families get health care, to streamlining how they look at program and acquisition data, to supporting proactive cyber defense,” OpenAI stated.
This latest venture is not OpenAI’s first engagement with military applications; the company previously collaborated with Anduril Industries in December 2024, integrating its AI software into the firm’s counter-drone systems. This new one-year contract with the Department of Defense contrasts with OpenAI’s earlier terms of service, which explicitly prohibited the use of its technology for military applications—an exclusion that was lifted last year.
OpenAI’s contract with the Department of Defense is part of a broader trend aimed at enhancing military capabilities through AI technology. Earlier this month, the U.S. also renamed the AI Safety Institute to emphasize addressing national security risks rather than general safety issues. Additionally, competitors in the AI sector, such as Anthropic, have announced models with fewer restrictions for defense and intelligence agencies, while Google and Meta have shifted their commitments regarding the use of AI for national security purposes.