The American artificial intelligence (AI) company OpenAI has signed a contract with the U.S. Department of Defense worth up to $200 million (approximately 270 billion KRW) to develop AI technologies applicable in combat and administrative fields.
According to the contract details announced by the U.S. Department of Defense, the purpose of this project is to develop a prototype of ‘Frontier AI’ technology aimed at addressing key national security challenges. The project will be conducted near Washington D.C. and is scheduled to last until July 2026. An initial payment of $2 million has been made, with the potential for up to $200 million in support to follow in stages.
OpenAI stated that this contract is part of its government-only program, ‘OpenAI for Government,’ which aims to provide tailored AI models to U.S. government agencies.
In its company blog, OpenAI explained that the primary goals of this project include improving military administrative systems, enhancing medical accessibility for military personnel, and strengthening cyber defense capabilities. However, the contract documentation from the Department of Defense also specifies the inclusion of technologies for the ‘warfighting’ sector.
OpenAI has historically imposed strict restrictions on military use of its technology. Until January 2024, its usage policy included a clause prohibiting use for military and war purposes, but this was revised in the same year to allow conditional collaboration. Currently, a general guideline is in place advising against using the technology in ways that harm oneself or others.
This contract represents OpenAI’s first major official agreement with the U.S. government and defense sectors. Previously, OpenAI collaborated with defense technology company Anduril to test and apply AI technologies in the surveillance and detection fields. Furthermore, the company has reinforced its capabilities in the defense arena by bringing former NSA director Paul Nakasone onto its board and hiring former Department of Defense official Sasha Baker as the head of national security policy.
The contract was awarded through a competitive bidding process, with 12 companies reportedly submitting bids according to American media. The U.S. Department of Defense expects that AI technology could significantly improve administrative and operational efficiency in the future.