OpenAI, the company behind ChatGPT, just locked in a massive deal with the U.S. government. The Pentagon announced that OpenAI was awarded a $200 million contract to develop advanced artificial intelligence tools for national defense.
The tech will support both military operations and internal government systems. The work will mostly happen in and around Washington, D.C., and the contract is expected to wrap up by July 2026.
This move comes as OpenAI continues to scale fast. The company says it’s now pulling in revenue at a pace of $10 billion annually and is on track to raise up to $40 billion in new funding, possibly pushing its valuation to $300 billion. As of March, OpenAI had 500 million people using its tech every week.
While the White House has issued new AI guidelines for government agencies, those rules don’t apply to national security projects—making deals like this one possible.
Bottom line: OpenAI isn’t just building chatbots anymore. They’re now deep in the defense game, shaping how AI could be used in real-world military and security operations.
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