OpenAI is now officially working with the U.S. military.
The Department of Defense has announced a $200 million contract with an AI company to develop advanced tools for national security, including systems for proactive cyber defense.
The deal marks a major shift for OpenAI, which previously avoided military partnerships.
The Defense Department says OpenAI will create prototype “frontier AI” capabilities to tackle key security and administrative challenges. The work will be based primarily in Washington, D.C., and is expected to continue through July 2026.
OpenAI confirmed the agreement in a blog post, describing it as its first official government partnership under a new initiative to support AI use across federal, state, and local agencies. The company says it will offer custom AI models for national security “on a limited basis” and insists that all projects must follow its strict policies, which still ban the use of its technology for developing weapons or harming people.
According to OpenAI, the contract will help improve how the military handles operations such as healthcare for service members, analysis of procurement data, and cyber defense planning.
This isn’t OpenAI’s first brush with military tech. In December 2024, the company teamed up with defense startup Anduril to help power anti-drone systems. This latest Pentagon deal signals a broader move into the defense space, a sharp contrast to OpenAI’s earlier rules that prohibited any military use — rules the company removed in 2023.
The deal also comes as other tech giants begin relaxing their own restrictions. Anthropic recently launched a more flexible AI model for U.S. defense agencies. Google removed its commitment to avoid harmful AI use earlier this year, and Meta is now allowing the U.S. government to use its Llama AI models for national security purposes.
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OpenAI says it disagrees with any misuse of AI but believes responsible partnerships can help improve public sector services. The $200 million agreement reflects growing demand from governments for AI solutions and a significant change in how OpenAI positions itself within that landscape.
