OpenAI awarded $200M U.S. defense contract

OpenAI Public Sector LLC, San Francisco, California, has been awarded a fixed amount, prototype, other transaction agreement with a value of $200,000,000 from the U.S. Chief Digital and Artificial Intelligence Office. Under this award, the performer will develop prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains. The work will be primarily performed in the National Capital Region with an estimated completion date of July 2026. Fiscal 2025 research, development, test and evaluation funds in the amount of $1,999,998 are being obligated at time of award. Office of the Secretary of Defense Chief Digital and Artificial Intelligence Office, Washington D.C., is the contracting activity. The Fly notes that OpenAI is backed in part by Microsoft (MSFT).