Artificial intelligence technology firm OpenAI has secured a $200 million defense contract with the U.S. Department of Defense. As part of the partnership, OpenAI will supply the Department of Defense with specific AI tech to help them optimize on routine tasks as per an update on the 16th of June, 2025, on its official website.
“OpenAI Public Sector LLC, San Francisco, California, has been awarded a fixed amount, prototype, other transaction agreement (HQ0883-25-9-0012) with a value of $200,000,000. Under this award, the performer will develop prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains,” read the official statement.
The work will be performed in the National Capital Region and has an expected completion date of July 2026. The specific contracting body for this agreement is the Chief Digital and Artificial Intelligence Office.
The contract is OpenAI’s first partnership under its OpenAI for Government, an initiative that will bring AI tools to public departments and its employees in the U.S. The AI company has established collaborations with the U.S. National Labs, the Air Force Research Laboratory, NASA, NIH, and the Treasury will all be managed under the OpenAI for Government initiative.
“Across these efforts, we’re aiming to improve both the day-to-day experience of public service and to help government employees feel more empowered, more efficient, and more supported in their critical missions,” read the company blog post.
OpenAI’s footprint continues to grow with multiple partnerships on the table with government institutions and tech companies such as Apple and Microsoft. The company reached $10 billion in annual recurring revenue, which includes sales from the company’s consumer products, business products for ChatGPT, and API, up from $5.5 billion declared in December 2024 as per multiple new reports.