ChatGPT maker OpenAI bagged a $200 million contract from the US Defense Department to provide artificial intelligence tools.
As per the sources, under this award, the performer will be able to develop prototype frontier AI capabilities to address critical national security challenges in both war fighting and enterprise domains. With an estimated completion date of July 2026, the work is expected to be primarily performed in and near Washington.
OpenAI with 500 million weekly active users by the end of March claimed that it would raise up to $40 billion in a new funding round led by SoftBank Group at a $300 billion valuation. Last week, OpenAI said that its annualized revenue run rate leaped to $10 billion as of June, positioning the company to hit its full-year target amid booming AI adoption.
The White House's Office of Management and Budget released new guidance in April directing federal agencies to ensure that the government and the public benefit from a competitive American AI marketplace with an exemption for national security and defense systems.
Founded in 2015 as a nonprofit, it now operates under a hybrid model with significant investment from Microsoft.
Recent developments include the launch of GPT-4.1 and new hardware via a $6.5 billion acquisition of Jony Ive’s company. OpenAI has also introduced government-focused AI tools and formed partnerships like one with Mattel. CEO Sam Altman suggests AI may have already surpassed human intelligence, positioning OpenAI at the forefront of this evolution.