USA: OpenAI signs a $200 million contract with the Department of Defense and launches 'OpenAI for Government'

USA: OpenAI signs a $200 million contract with the Department of Defense and launches 'OpenAI for Government'

TLDR : OpenAI Public Sector LLC has concluded a $200 million contract with the United States Department of Defense (DoD) to develop advanced artificial intelligence capabilities for national security challenges. This partnership is part of the 'OpenAI for Government' initiative, aiming to help administrations integrate OpenAI's models into their operations.
On June 16, the United States Department of Defense (DoD) formalized a $200 million contract between OpenAI Public Sector LLC, OpenAI's entity dedicated to institutional relations, and the Chief Digital and Artificial Intelligence Office (CDAO), its office in charge of AI and digital strategies. This agreement seals the first partnership of the 'OpenAI for Government' initiative announced the same day on the company's blog.
 
This partnership is based on an 'other transaction agreement' (OTA), a Pentagon legal mechanism that allows funding for technological projects without the administrative burdens of traditional public contracts. Less restrictive, it favors agility and collaboration with companies that do not traditionally work with the government. For the Pentagon, it's a decisive lever against the private sector's pace of innovation.
 
OpenAI is tasked with developing advanced artificial intelligence capabilities to address critical national security issues. The use cases considered cover both operational areas (cyber defense, automated data processing, mission support) and management functions (healthcare access for personnel, administrative optimization). The work will be primarily conducted in the Washington region, with a deadline set for July 2026.

A Structuring Initiative: OpenAI for Government

This contract with the DoD is part of the broader OpenAI for Government initiative, designed as a one-stop shop for administrations wishing to explore or integrate OpenAI's models into their activities. It consolidates projects already engaged with several federal agencies, including the Los Alamos, Livermore, and Sandia national laboratories, NASA, NIH, and the Treasury Department, and paves the way for new deployments in environments compliant with strict government security requirements.
The offer includes:
  • access to ChatGPT Enterprise and ChatGPT Government in isolated and protected environments;
  • the development of custom models, notably for national security;
  • operational support and anticipation of technological evolutions for better planning.

What This Contract Changes

  1. Doctrinal Evolution
    Until 2023, OpenAI excluded military uses in its terms of use. This contract symbolizes an assumed turnaround: contributing to defense while affirming a 'responsible' ethical framework.

  2. Race to 'Frontier Models'
    Faced with Anthropic (Claude), Microsoft + Palantir, Google DeepMind or Anduril, OpenAI's Public Sector subsidiary scores points for future federal tenders.

  3. Signal to Allies
    The agreement could serve as a model for NATO; in the UK, Australia, or Canada, similar discussions are already emerging.

For years, the links between AI publishers and the Department of Defense have generated much ink, raising ethical questions. In 2017, Google's Maven project sparked protests within the company itself. Today, AI applications in defense are becoming more widespread and increasingly essential.