OpenAI wins $200M deal to build AI for US military
What's the story
OpenAI, the creator of ChatGPT, has secured a $200 million contract with the US Department of Defense.
The Pentagon announced on Monday that this contract is aimed at developing advanced artificial intelligence (AI) tools.
These tools will be designed to address critical national security issues in both combat and enterprise sectors.
The project is expected to be primarily executed in Washington and its surrounding areas, with an estimated completion date set for July 2026.
AI for government
OpenAI launches new initiative called 'OpenAI for Government'
In a blog post, OpenAI announced this contract marks the company's first project under its newly established entity, 'OpenAI for Government.'
This project consolidates all of OpenAI's existing government projects, including ChatGPT Gov—a version of ChatGPT designed specifically for government employees.
The company also plans to work with the Defense Department on various administrative tasks such as providing healthcare to US military members and preventing cyberattacks.
Financial progress
OpenAI's annual revenue run rate hits $10 billion
OpenAI recently disclosed that its annual revenue run rate has increased to $10 billion as of June.
This financial growth positions the company well to meet its full-year targets amid a surge in AI adoption.
In March, OpenAI announced plans to raise up to $40 billion in a new funding round led by SoftBank Group at a valuation of $300 billion.
As of end-March, the company boasted 500 million weekly active users.
Strategic appointments
AI tools that uphold democratic values
In recent months, OpenAI has expressed its intention to develop AI tools that uphold democratic values.
The company has also made significant appointments, including a former top Pentagon official to lead its national security policy team and the ex-head of the National Security Agency onto its board.