OpenAI secures a $200 million U.S. defense deal.
The Pentagon announced that OpenAI, the creator of ChatGPT, has been granted a $200 million contract to supply artificial intelligence capabilities to the U.S. Defense Department.
The Pentagon stated, “Under this award, the performer will create prototype advanced AI capabilities to tackle significant national security challenges in both military and enterprise sectors.”
The project will predominantly take place in and around Washington, with an anticipated completion date of July 2026, according to the Pentagon.
OpenAI announced this week that its annualized revenue run rate increased to $10 billion as of June, enabling the business to achieve its full-year target amidst the rapid use of AI.
In March, OpenAI announced plans to secure up to $40 billion in a new fundraising round, spearheaded by SoftBank Group (9984.T), at a valuation of $300 billion. As of the end of March, OpenAI has 500 million weekly active users.
In April, the White House’s Office of Management and Budget issued new directives instructing federal agencies to guarantee that both the government and the public derive advantages from a competitive American AI economy.
