Latest news with #OpenAIforGovernment
CNBC
06-08-2025
- Business
- CNBC
OpenAI is giving ChatGPT to the government for $1
OpenAI on Wednesday announced it will offer its ChatGPT Enterprise product to U.S. federal agencies for $1 through the next year, making its technology available to the federal executive branch workforce at "essentially no cost." The company has been working to deepen its ties to lawmakers and regulators in recent months, and it will open its first office in Washington, D.C. early next year. OpenAI said participating agencies will get access to its frontier models through ChatGPT Enterprise, and it will also offer access to features like Advanced Voice Mode for an additional 60-day period. The company has partnered with the U.S. General Services Administration to launch the initiative. "Helping government work better – making services faster, easier, and more reliable—is a key way to bring the benefits of AI to everyone," OpenAI said in a blog post. In June, OpenAI launched a new offering called OpenAI for Government and said it was awarded a contract of up to $200 million by the U.S. Department of Defense. The company is currently engaging in talks with investors about a potential stock sale at a valuation of roughly $500 billion, as CNBC previously reported. OpenAI announced a $40 billion funding round in March at a $300 billion valuation, by far the largest amount ever raised by a private tech company.
Business Insider
16-07-2025
- Business
- Business Insider
Pentagon Awards $800M in AI Contracts: How Google, Microsoft, and Palantir Could Gain
The U.S. Department of Defense has awarded contracts worth up to $800 million to four major AI players: xAI, OpenAI, Google (GOOG), and Anthropic. Each agreement has a ceiling of $200 million and focuses on developing 'agentic' AI systems that can interpret data, make decisions, and operate autonomously in secure, classified environments. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. These contracts are part of the Pentagon's 'commercial-first' strategy to speed up the adoption of scalable, secure AI across military operations. Applications range from logistics and cybersecurity to battlefield planning. The initiative also reflects growing concerns about staying competitive with global rivals, such as China, in defense technology. What's the Plan, Stan? Google is contributing through its cloud division. Google Cloud holds an Impact Level 6 (IL6) clearance, the highest level of security authorization for handling classified government data. That clearance makes it a strong candidate to support sensitive AI workloads. While the company has not specified which products are involved, its secure cloud infrastructure, such as Tensor Processing Units and the Agentspace stack, could play a key role. Although $200 million is minor compared to Google's 2 trillion market cap, defense partnerships may boost long-term positioning in the enterprise and government cloud space. Microsoft (MSFT), while not a direct contract recipient, is closely tied to the effort. OpenAI's tools are deployed using Microsoft Azure, which already meets Department of Defense security standards. OpenAI's new 'OpenAI for Government' initiative includes models for cyber defense, logistics, and secure communications. As OpenAI's exclusive infrastructure partner, Microsoft could benefit as Azure becomes more embedded in government AI workflows. Another major player, Palantir Technologies (PLTR), may also benefit indirectly. Anthropic's Claude Gov models are designed for use in secure, classified networks. Palantir, known for its data integration and analytics platforms across U.S. defense agencies, could act as a distribution and deployment partner. While there is no formal link between Anthropic and Palantir in this contract, existing collaborations suggest that integration is possible. xAI, founded by Elon Musk, introduced 'Grok for Government' and secured a spot on the General Services Administration (GSA) schedule. That placement allows federal agencies to purchase its tools more easily. While xAI remains private, and its chatbot has drawn scrutiny for erratic responses, inclusion in this award round signals an entry point into national security work. Using TipRanks' Comparison Tool, we've assembled and compared the three publicly traded companies appearing in the piece. This helps you gain a broader perspective on each stock and its overall standings. The Takeaway for Investors These contracts are more about strategic positioning than immediate revenue. AI companies with government-grade security, scalable infrastructure, and integration potential may gain long-term advantages as defense spending on AI accelerates.
Business Insider
15-07-2025
- Business
- Business Insider
Alphabet (GOOGL) Wins $200 Million AI Defense Contract
Google parent company Alphabet (GOOGL) has been awarded a $200 million contract from the U.S. Department of Defense for the development of various artificial intelligence (AI) projects. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Alphabet is the most high profile publicly traded company to secure a lucrative AI contract from the U.S. Defense Department. Other companies that were granted contract awards of up to $200 million for AI work include privately held start-ups Anthropic, OpenAI, and xAI. American defense officials said the awards will help the agency accelerate its adoption of 'advanced AI capabilities to address critical national security challenges.' The selected companies will work to develop AI agents across several mission areas at the Defense Department, although exactly what projects Alphabet and the other companies will work on is not clear. Strategic Advantage In a news release, the U.S. Defense Department said, 'The adoption of AI is transforming the Department's ability to support our warfighters and maintain strategic advantage over our adversaries.' This appears to be Alphabet's first contract with the Defense Department specifically for AI. OpenAI was previously awarded a year-long $200 million contract from the Defense Department in 2024, shortly after it said that it would collaborate with defense technology start-up Anduril to deploy advanced AI systems for 'national security missions.' In June of this year, the company launched OpenAI for Government for U.S. federal, state, and local government workers. Is GOOGL Stock a Buy? The stock of Alphabet has a consensus Strong Buy rating among 37 Wall Street analysts. That rating is based on 28 Buy and nine Hold recommendations issued in the last three months. The average GOOGL price target of $202.24 implies 12.24% upside from current levels.
NBC News
14-07-2025
- Business
- NBC News
Anthropic, Google, OpenAI and xAI granted up to $200 million for AI work from Defense Department
The U.S. Department of Defense on Monday said it's granting contract awards of up to $200 million for artificial intelligence development at Anthropic, Google, OpenAI and xAI. The DoD's Chief Digital and Artificial Intelligence Office said the awards will help the agency accelerate its adoption of 'advanced AI capabilities to address critical national security challenges.' The companies will work to develop AI agents across several mission areas at the agency. 'The adoption of AI is transforming the Department's ability to support our warfighters and maintain strategic advantage over our adversaries,' Doug Matty, the DoD's chief digital and AI officer, said in a release. Elon Musk's xAI also announced Grok for Government on Monday, which is a suite of products that make the company's models available to U.S. government customers. The products are available through the General Services Administration (GSA) schedule, which allows federal government departments, agencies, or offices to purchase them, according to a post on X. OpenAI was previously awarded a year-long $200 million contract from the DoD in 2024, shortly after it said it would collaborate with defense technology startup Anduril to deploy advanced AI systems for 'national security missions.' In June, the company launched OpenAI for Government for U.S. federal, state, and local government workers.
CNBC
14-07-2025
- Business
- CNBC
Anthropic, Google, OpenAI and xAI granted up to $200 million for AI work from Defense Department
The U.S. Department of Defense on Monday said it's granting contract awards of up to $200 million for artificial intelligence development at Anthropic, Google, OpenAI and xAI. The DoD's Chief Digital and Artificial Intelligence Office said the awards will help the agency accelerate its adoption of "advanced AI capabilities to address critical national security challenges." The companies will work to develop AI agents across several mission areas at the agency. "The adoption of AI is transforming the Department's ability to support our warfighters and maintain strategic advantage over our adversaries," Doug Matty, the DoD's chief digital and AI officer, said in a release. Elon Musk's xAI also announced Grok for Government on Monday, which is a suite of products that make the company's models available to U.S. government customers. The products are available through the General Services Administration (GSA) schedule, which allows federal government departments, agencies, or offices to purchase them, according to a post on X. OpenAI was previously awarded a year-long $200 million contract from the DoD in 2024, shortly after it said it would collaborate with defense technology startup Anduril to deploy advanced AI systems for "national security missions." In June, the company launched OpenAI for Government for U.S. federal, state, and local government workers.
