Latest news with #OpenAIforGovernment
Business Insider
32 minutes ago
- Business
- Business Insider
OpenAI Bags $200M Defense Deal to Boost Government AI Capabilities
Sam Altman -led OpenAI has won a $200 million contract from the U.S. Department of Defense (DoD) to develop frontier artificial intelligence (AI) models for national security purposes across warfighting and enterprise domains. The contract is awarded to OpenAI Public Sector LLC, with the project mostly being conducted in and around the National Capital Region and an expected completion date of July 2026. Frontier AI models are characterized by their multimodal capabilities, large scale, high computational power needs, and potential for creating significant impact across different industries. Confident Investing Starts Here: To mark the occasion, OpenAI launched the 'OpenAI for Government' initiative on its portal, aiming to bring its most advanced AI tools to public servants across the U.S. The segment combines all of the ChatGPT-maker's previous government-related customers and partnerships under one roof. Plus, its work with the U.S. National Labs, the Air Force Research Laboratory, NASA, NIH, and the Treasury will all be brought under the OpenAI for Government initiative. OpenAI Doubles Down on U.S. Defense Goals The new contract has a $200 million ceiling and is signed with the Chief Digital and Artificial Intelligence Office (CDAO). The company will provide the department access to its advanced AI tools, particularly its ChatGPT GOV and ChatGPT Enterprise products. OpenAI will help in transforming the department's administrative operations, including getting health care for service members and their families, streamline programming and acquisition data, and help prevent cyberattacks. Last year, OpenAI also join hands with Anduril Industries to develop AI for anti-drone systems, furthering national security missions. OpenAI is taking all necessary measures to ensure that its government contracts are executed successfully, with appropriate guidance. The AI company has brought in a former top Pentagon officer to lead its national security policy team, as well as added former head of the National Security Agency, Paul Nakasone, to its board. OpenAI's valuation and revenue base have grown in leaps and bounds within a short period. The Microsoft (MSFT) -backed company boasts 500 million weekly active users and recently announced that its annualized revenue run rate has reached $10 billion. Meanwhile, it is in the process of raising $40 billion in its latest funding round, led by Japan's SoftBank (SFTBY), which assigns a hefty valuation of $300 billion to the AI startup. What Are the Best AI Stocks to Invest in? We used TipRanks' Stock Comparison Tool for Best Artificial Intelligence Stocks to determine which stock is most favored by analysts. Investors can invest in any of these stocks after thorough research. Currently, Microsoft, Meta (META), Alphabet (GOOGL), Micron (MU), Amazon (AMZN), and Nvidia (NVDA)
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Business Standard
6 hours ago
- Business
- Business Standard
OpenAI wins $200 mn contract with Pentagon to pilot AI for defence tasks
OpenAI will work with the Defense Department to come up with ways that AI can help with administrative tasks, such as getting health care for US military members and helping prevent cyberattacks Bloomberg OpenAI has won a $200 million contract for a pilot program aimed at helping the US Defense Department determine how it could use artificial intelligence for a range of administrative and security tasks. The one-year contract, which the Defense Department disclosed Monday, is the latest push by the ChatGPT-maker to sell its technology to the US government. As part of the effort, OpenAI will work with the Defense Department to come up with ways that AI can help with administrative tasks, such as getting health care for US military members and helping prevent cyberattacks. OpenAI for Government consolidates all of OpenAI's existing government projects in one area of the company, including ChatGPT Gov — a version of ChatGPT meant for government workers — as well as its work with Nasa, the National Institutes of Health, the Air Force Research Laboratory and the Treasury Department. The company also said late last year that it would partner with weapons maker Anduril Industries Inc. to build AI for anti-drone systems, in another sign of its expanding work with the US government, particularly around national security. In recent months, OpenAI has said that it plans to build out AI tools that uphold democratic values. The AI startup has also brought in a former top Pentagon official to lead its national security policy team and added the former head of the National Security Agency to its board.
Business Insider
9 hours ago
- Business
- Business Insider
OpenAI is going big into government tech
OpenAI is amping up its collaboration with the US government. The US Department of Defense said Monday that OpenAI was awarded a $200 million contract to develop AI tools for military and national security applications, primarily in the National Capital Region, which includes Washington, DC. "Under this award, the performer will develop prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains," said the Department of Defense. "This contract was a competitive acquisition and 12 offers were received," the DoD added. The one-year deal marks the company's first official defense contract, but this isn't the first time OpenAI has worked with the government. Shortly following news of the government contract, OpenAI revealed its "OpenAI for Government" initiative, which brings all its existing government collaborations under the same umbrella. According to an OpenAI blog post, this initiative could change everything from how service members get healthcare to supporting cyber defense. "Across these efforts, we're aiming to improve both the day-to-day experience of public service and to help government employees feel more empowered, more efficient, and more supported in their critical missions," OpenAI wrote on its blog. In December, OpenAI said it partnered with defense tech startup Anduril to deploy AI systems for "national security missions" such as "the nation's counter-unmanned aircraft systems." In January, CEO Sam Altman appeared alongside President Donald Trump at the White House to unveil the $500 billion " Stargate" project, which aims to build domestic AI infrastructure. Altman told former NSA chief Paul Nakasone in a public conversation in April that the company is "proud to and really want to engage in national security areas." Other AI rivals have also been competing for government contracts. Anthropic announced back in November that it would team up with Amazon Web Services and Palantir to provide US intelligence and defense agencies with its Claude AI models. Analysts at the financial services company William Blair wrote in a note following news of the contract that OpenAI has one of the largest Department of Defense contracts ever given to a software provider when measured by annual contract value. The note added that for context, Palantir Technologies, which is a prominent defense software company, has an annual recurring revenue rate of $210 million with the Department of Defense for an AI program that processes drone imagery and full-motion videos. "Today's contract announcement could signal increased competition from OpenAI going forward if OpenAI moves into Palantir's ontology territory," William Blair analysts added. "We would not be surprised if Palantir shares traded lower tomorrow, given its recent run, rich valuation, and the signs of competitive pressure." However, William Blair analysts mentioned that there is a possibility that OpenAI is collaborating with Palantir instead. Many details of what the contract consists of still remain unclear.
