OpenAI wins US$200mn US defense contract
OpenAI wins US$200mn US defense contract
OpenAI is tasked with developing AI prototypes to address "national security challenges." Photo: Reuters
ChatGPT maker OpenAI was awarded a US$200 million contract to provide the US Defense Department with artificial intelligence tools, the Pentagon said in a statement on Monday.
"Under this award, the performer will develop prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains," the Pentagon said.
The work will be primarily performed in and near Washington with an estimated completion date of July 2026, the Pentagon said.
OpenAI said last week that its annualised revenue run rate surged to US$10 billion as of June, positioning the company to hit its full-year target amid booming AI adoption.
OpenAI said in March it would raise up to US$40 billion in a new funding round led by SoftBank Group at a US$300 billion valuation.
OpenAI had 500 million weekly active users as of the end of March.
The White House's Office of Management and Budget released new guidance in April directing federal agencies to ensure that the government and "the public benefit from a competitive American AI marketplace."
The guidance had exempted national security and defense systems. (Reuters)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Asia Times
7 hours ago
- Asia Times
America and rare earths: a little urgency, please
America usually has other countries over a barrel. Not the other way around – unless you're old enough to remember when the Organization of Petroleum Exporting Countries (OPEC) cracked the whip and Washington and the West usually fell in line. But last week China forced President Trump to back down on tough tariffs that were hurting the PRC. Why the retreat? Rare earth minerals. They're nearly all sourced from China and Beijing choked off exports. Major American companies – car makers for example – warned Trump they'd have to curtail or shut down operations in a matter of weeks. That's never good for an incumbent party's political prospects. The Trump administration reduced tariffs in exchange for Beijing's sort-of agreement to allow rare earth exports to US customers. How much and how fast is unknown – but expect the PRC to slow-roll this and squeeze all it can – such as sensitive business data – from its customers. At best, this is a temporary reprieve. The US side also agreed to drop plans to ban Chinese students from US universities. One also suspects a quiet agreement to relax US controls on semiconductor and AI-related technology exports to China. US tariffs remain at 55%, but that's much lower than the 145% originally imposed. And the PRC probably can handle that level. There's still a 20% 'fentanyl tariff' imposed for Chinese-origin fentanyl that has killed well over 500,000 Americans over the last decade. This ought to be 2000%. Instead, US negotiators settled for China agreeing (once again) to discuss the fentanyl issue. China controls around 90% of the world's rare earth processing. And America imports most of its rare earths from the PRC. It's not that they are rare. The US has plenty of rare earths. It's just much cheaper to source from China, and US environmental laws make domestic mining and processing difficult and expensive. They are essential for commercial manufacturing – cars, electronics, computers, etc. And more ominously they're needed for military production – to include aircraft, ships, submarines, radars, missiles, lasers, satellites, guidance systems, night vision devices and more. It's not Trump's fault. He got caught holding the hot potato. China's chokehold on rare earths was known a long time ago. American business and the US military knew. And Congress knew as well. And they knew the Chinese might use their dominant position to squeeze other countries. In 2010 after Japan detained a Chinese fishing boat that rammed a Coast Guard ship near Japan's Senkaku islands, China banned rare earth exports to Japan. Japanese industry squirmed. The boat and its skipper were returned. And Japan set about finding alternate sources of rare earths. The United States? Apparently it did nothing. It was 15 years of idiocy by the business class, officialdom and the military's perfumed princes. Yes, some people sounded the alarm, but they got nowhere. Being known as 'the rare earths congressman' wasn't a vote-getter. The Obama and Biden administrations' environmental zealots were glad to have 'dirty' rare earths produced elsewhere – but not in America. Businessmen are all about efficiency, low cost and maximizing profit. Rare earths would always be available somewhere – and anyway the Chinese wouldn't choke the flow. After all, the Chinese weren't an enemy. They just wanted to get rich. Such rationalizations come easy to the MBA class. But rare earth vulnerability was also not a priority for America's military leaders. Think about this. Nobody saw anything wrong with being dependent – over 90% dependent – on the PRC for a crucial resource that the military needs to fight? The PRC had declared America 'the main enemy' and has built a military intended for one main purpose: to defeat the US military. But they would keep supplying the US military with vital materials – without which it can barely function? Who in the top ranks was raising merry hell about this state of affairs? Nobody. Instead, it was Legions of Merit and promotions all around. The rare earth problem is now getting attention. It has been for a few years. The Trump administration has bought a little time, but the PRC will use rare earths as a Sword of Damocles as long as possible. Still there's no sense of urgency. 'Drill baby drill' and Yankee ingenuity got American energy independence back in Trump 1.o – even if Team Biden later decided it didn't like the idea. So maybe it will be 'Rare earths baby rare earths' this time around. If so, restoring tax credits for domestic critical minerals mining and processing to the administration's 'Big Beautiful Bill' is essential. Pundits say it will take ten years to break the China dependency. They are often wrong. When Americans put their minds to something – and are given freedom to operate – things always happen faster. But first stop admiring the problem and get moving. Faster. Grant Newsham is a retired US Marine officer and former US diplomat. He's a fellow at the Center for Security Policy and the Yorktown Institute, and is the author of When China Attacks: A Warning to America . Follow on X @NewshamGrant
RTHK
8 hours ago
- RTHK
G7 leaders urge Trump to ease off trade war
G7 leaders urge Trump to ease off trade war US President Donald Trump holds a signed trade agreement with Britain during a meeting with British Prime Minister Keir Starmer at the G7 summit. Photo: Reuters World leaders at the Group of Seven summit in Canada on Monday tried to push US President Donald Trump to back away from his punishing trade war that poses a risk to global economic stability. At a summit where host Canada hopes to avoid stoking Trump's anger, and with attention on events in the Middle East, leaders still urged the US leader to reverse course on his plans to slap even steeper tariffs on countries across the globe as early as next month. "Several participants asked to end the tariff dispute as soon as possible. They argued that this dispute weakens the G7's economies and in the end will only strengthen China," a senior German official told reporters on condition of anonymity. The six other countries urged Trump to end his trade conflict as soon as possible, telling him that his protectionist policies were only "damaging to ourselves," the official added. Most countries represented at the G7 are already subject to a 10 percent baseline tariff imposed by Trump, under a temporary easing of higher rates, with European countries and Japan also slapped with additional levies on cars and steel and aluminum. Britain in May was the first country to sign a preliminary deal with Washington to avoid deeper tariffs, and the two leaders at the G7 said they had agreed on the accord's final points and signed the agreement. "I like them. That's the ultimate protection," Trump told reporters after a meeting with British Prime Minister Keir Starmer on the G7 sidelines. Trump opened a folder to display the signed documents, only for the paperwork to slide out and spread across the ground. "Oops, sorry about that," he said as Starmer scrambled to gather up the loose sheets and stuff them back in the folder. The trade issue is of particular interest to Canada after the Trump administration announced several extra levies on Canadian imports in recent months, throwing the country's economic future into deep uncertainty. After a meeting between Trump and Prime Minister Mark Carney, the Canadian government indicated that the two sides could come to a trade truce deal in the next 30 days. Mexican President Claudia Sheinbaum will also have her face-to-face time with Trump as her country tries to renegotiate its three-way North American free trade agreement that also includes Canada. Dozens of countries are locked in negotiations with Washington to clinch some sort of trade deal before the US imposes stinging reciprocal tariffs, threatened for July 9. But US Treasury Secretary Scott Bessent last week said that the date could be pushed back later for countries thought to be negotiating in good faith. German Chancellor Friedrich Merz told reporters he would team up with his counterparts from France and Italy to discuss the US trade threat with Trump directly. (AFP)
RTHK
8 hours ago
- RTHK
OpenAI wins US$200mn US defense contract
OpenAI wins US$200mn US defense contract OpenAI is tasked with developing AI prototypes to address "national security challenges." Photo: Reuters ChatGPT maker OpenAI was awarded a US$200 million contract to provide the US Defense Department with artificial intelligence tools, the Pentagon said in a statement on Monday. "Under this award, the performer will develop prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains," the Pentagon said. The work will be primarily performed in and near Washington with an estimated completion date of July 2026, the Pentagon said. OpenAI said last week that its annualised revenue run rate surged to US$10 billion as of June, positioning the company to hit its full-year target amid booming AI adoption. OpenAI said in March it would raise up to US$40 billion in a new funding round led by SoftBank Group at a US$300 billion valuation. OpenAI had 500 million weekly active users as of the end of March. The White House's Office of Management and Budget released new guidance in April directing federal agencies to ensure that the government and "the public benefit from a competitive American AI marketplace." The guidance had exempted national security and defense systems. (Reuters)
