OpenAI has been awarded a $200 million contract by the U.S. Defense Department to create AI capabilities that target critical national security challenges. The defense project, focusing on both warfare and enterprise domains, aims for completion by July 2026. OpenAI reports robust financial growth, with a $10 billion annualized revenue run rate, and plans a major funding round to bolster its valuation. New federal guidance has also been issued to enhance the competitive American AI marketplace, although it does not apply to defense systems.
OpenAI has been awarded a $200 million contract by the U.S. Defense Department to develop AI tools for addressing national security challenges.
Under this award, the performer will develop prototype frontier AI capabilities to address critical national security challenges in both war fighting and enterprise domains.
OpenAI's annualized revenue run rate surged to $10 billion, positioning the company to hit its full-year target amid booming AI adoption.
The guidance directed federal agencies to ensure the government and public benefit from a competitive American AI marketplace but exempted national security and defense systems.
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