U.S. Military Invests $200 Million in Open AI

Published: 20 Jun 2025

Author: Precedence Research

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Open AI received a USD 200 million contract from the U.S. Department of Defense to incorporate Artificial Intelligence models in the military of the United States. San Francisco-based AI model company OpenAI is set to develop prototype frontier AI capabilities to work on critical national security and address its issues related to both domains of warfighting and enterprise.

According to OpenAI, this program is the first partnership between the defense sector and OpenAI, which will initiate putting AI models to work for the government as per its requirements. OpenAI wants to show how the incorporation of AI will improve administrative work, including how service members can leverage healthcare facilities, cyber defense, and others mentioned by startups in their posts. Most of their work will take place in the Washington, D.C., area. OpenAI will give access to custom AI models to U.S. government bodies for national security and support with product roadmap data.

OpenAI usage guidelines will be leveraged for consistent use of AI capabilities in U.S. and military operations for safety and ethical purposes. Many tech giants are continuously pitching their ideas and offerings of AI models that the U.S. military can utilize. Some of the companies are Meta, OpenAI, and Palantir, which was founded by Peter Thiel, a tech billionaire who played a significant role in the rightward shift of Silicon Valley.

To develop and deploy AI models for security missions, a strategic partnership was announced by tech startup Anduril Industries and OpenAI late last year. According to the companies, this alliance offers OpenAI’s models and tech platform by Anduril to escalate defenses against aerial drones and other systems like unmanned aircraft systems.

At this time, OpenAI CEO Sam Altman said,” OpenAI builds AI to benefit as many people as possible and supports U.S.-led efforts to ensure the technology upholds democratic values.”

On the other hand, OpenAI is currently working in the U.S. to develop additional computing power. In January, Sam Altman arrived at the White House alongside U.S. President Donald Trump, aiming to announce the USD 500 billion Stargate project to establish AI infrastructure in the U.S.