OpenAI Secures $200M Pentagon Contract Amidst AI Boom
OpenAI has received a $200 million contract from the U.S. Defense Department to develop AI tools for national security. The contract highlights increasing governmental reliance on AI amidst OpenAI's rapid growth in revenue and user base.
The United States Department of Defense has awarded a $200 million contract to OpenAI to develop artificial intelligence tools, the Pentagon disclosed on Monday. The initiative aims to create prototype frontier AI capabilities to tackle pressing national security challenges.
The majority of the work will be conducted in the Washington area, with a projected completion date set for July 2026. OpenAI revealed a significant surge in its annualized revenue, now at $10 billion, bolstered by the growing adoption of AI technologies.
In March, OpenAI announced plans to raise up to $40 billion in a new funding round led by SoftBank Group, valuing the company at $300 billion. Concurrently, the White House issued guidance to foster a competitive AI market, albeit exempting defense systems.
(With inputs from agencies.)
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