https://www.cnbc.com/2025/06/16/openai-wins-200-million-us-defense-contract.html Skip Navigation logo logo Markets * Pre-Markets * U.S. Markets * Currencies * Cryptocurrency * Futures & Commodities * Bonds * Funds & ETFs Business * Economy * Finance * Health & Science * Media * Real Estate * Energy * Climate * Transportation * Industrials * Retail * Wealth * Sports * Life * Small Business Investing * Personal Finance * Fintech * Financial Advisors * Options Action * ETF Street * Buffett Archive * Earnings * Trader Talk Tech * Cybersecurity * AI * Enterprise * Internet * Media * Mobile * Social Media * CNBC Disruptor 50 * Tech Guide Politics * White House * Policy * Defense * Congress * Expanding Opportunity Video * Latest Video * Full Episodes * Livestream * Live Audio * Live TV Schedule * CNBC Podcasts * CEO Interviews * CNBC Documentaries * Digital Originals Watchlist Investing Club * Trust Portfolio * Analysis * Trade Alerts * Meeting Videos * Homestretch * Jim's Columns * Education * Subscribe * Sign In Join IC PRO * Pro News * Josh BrownNEW! * My Portfolio * Livestream * Full Episodes * Stock Screener * Market Forecast * Options Investing * Chart Investing * Stock Lists * Subscribe * Sign In Join Pro Livestream Menu * Make It * select * USA * INTL * Livestream Search quotes, news & videos * Livestream Watchlist SIGN IN logo Markets Business Investing Tech Politics Video Watchlist Investing Club Join IC PRO Join Pro Livestream Menu background of header foreground of header * CNBC Disruptor 50 * Methodology * 2025 List * 2024 LIST * 2023 List * 2022 List * Newsletter CNBC Disruptor 50 OpenAI wins $200 million U.S. defense contract Published Mon, Jun 16 20256:15 PM EDTUpdated Mon, Jun 16 20258:15 PM EDT thumbnail Jordan Novet@jordannovet WATCH LIVE Key Points * The Defense Department has awarded a one-year $200 million contract to OpenAI for the use of its artificial intelligence models. * Most of the work will take place in the Washington, D.C. area. * In December, OpenAI announced a partnership with defense tech startup Anduril to deploy advanced AI systems for "national security missions." OpenAI CEO Sam Altman speaks during the Snowflake Summit in San Francisco on June 2, 2025. Justin Sullivan | Getty Images News | Getty Images OpenAI has been awarded a $200 million contract to provide the U.S. Defense Department with artificial intelligence tools. The department announced the one-year contract on Monday, months after OpenAI said it would collaborate with defense technology startup Anduril to deploy advanced AI systems for "national security missions." "Under this award, the performer will develop prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains," the Defense Department said. It's the first contract with OpenAI listed on the Department of Defense's website. Anduril received a $100 million defense contract in December. Weeks earlier, OpenAI rival Anthropic said it would work with Palantir and Amazon to supply its AI models to U.S. defense and intelligence agencies. Sam Altman, OpenAI's co-founder and CEO, said in a discussion with OpenAI board member and former National Security Agency leader Paul Nakasone at a Vanderbilt University event in April that "we have to and are proud to and really want to engage in national security areas." In a blog post, OpenAI said the contract represents the first arrangement in a new initiative named OpenAI for Government, which includes the existing ChatGPT Gov product. OpenAI for Government will give U.S. government bodies access custom AI models for national security, support and product roadmap information. "This contract, with a $200 million ceiling, will bring OpenAI's industry-leading expertise to help the Defense Department identify and prototype how frontier AI can transform its administrative operations, from improving how service members and their families get health care, to streamlining how they look at program and acquisition data, to supporting proactive cyber defense," the company said. "All use cases must be consistent with OpenAI's usage policies and guidelines." The Defense Department specified that the contract is with OpenAI Public Sector LLC, and that the work will mostly occur in the National Capital Region, which encompasses Washington, D.C., and several nearby counties in Maryland and Virginia. Meanwhile, OpenAI is working to build additional computing power in the U.S. In January, Altman appeared alongside President Donald Trump at the White House to announce the $500 billion Stargate project to build AI infrastructure in the U.S. The new contract will represent a small portion of revenue at OpenAI, which is generating over $10 billion in annualized sales. In March, the company announced a $40 billion financing round at a $300 billion valuation. In April, Microsoft, which supplies cloud infrastructure to OpenAI, said the U.S. Defense Information Systems Agency has authorized the use of the Azure OpenAI service with secret classified information. 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