OpenAI, the developer behind ChatGPT, recently secured a $200 million contract from the U.S. Department of Defense, which is approximately HKD 1.56 billion. This one-year agreement marks OpenAI’s official entry into the defense sector, launching a new initiative OpenAI for Government aimed at delivering cutting-edge artificial intelligence tool development services for the military.
According to an announcement from the U.S. Department of Defense, OpenAI will focus on developing advanced AI prototypes to tackle critical national security challenges, with work mainly taking place in and around Washington D.C., expected to be completed by July 2026. This contract is part of the OpenAI for Government initiative, which includes the existing ChatGPT Gov product, aimed at providing dedicated AI models, support services, and product development blueprints for U.S. government agencies.
OpenAI has announced that this contract will leverage its cutting-edge expertise to assist the Department of Defense in identifying and developing ways to utilize AI for reforming administrative operations. The areas of application include enhancing healthcare services for military personnel and their families, streamlining project and procurement data processing, and strengthening cybersecurity defenses. OpenAI also emphasizes that all use cases must comply with its usage policies and guidelines.
The contractor for this agreement is OpenAI Public Sector LLC, with its primary operations located in the National Capital Region, covering Washington D.C., Maryland, and Virginia. Earlier, OpenAI partnered with defense tech startup Anduril to deploy advanced AI systems for National Security Mission, and Anduril secured a $100 million defense contract (approximately HKD 780 million) last December. Additionally, OpenAI’s competitor, Anthropic, has announced a collaboration with Palantir and Amazon to provide AI models to U.S. defense and intelligence agencies.
However, the impact of this new contract on OpenAI’s overall revenue is relatively limited. The company’s annual sales have already surpassed $10 billion (approximately HKD 78 billion), and in March, it completed a funding round valued at $300 billion (around HKD 2.34 trillion) by securing $40 billion (about HKD 312 billion). Sam Altman, co-founder and CEO of OpenAI, stated at an event at Vanderbilt University that they are intentionally and proudly involved in the national security sector.
