ChatGPT maker OpenAI has been awarded a contract worth $200 million to provide artificial intelligence tools to the US Defence Department, 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 annualized revenue run rate surged to $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 $40 billion in a new funding round led by SoftBank Group at a $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 defence systems.
Mulling Microsoft Antitrust Accusation
OpenAI executives have considered accusing Microsoft, the company’s major backer, of anticompetitive behavior in their partnership, the Wall Street Journal reported on Monday, citing people familiar with the matter.
OpenAI’s effort could involve seeking a federal regulatory review of the terms of its contract with Microsoft for potential violations of antitrust law, as well as a public campaign, the report said.
Such a move could unravel one of the most pivotal tech partnerships in the fast-growing field of artificial intelligence.
“Talks are ongoing and we are optimistic we will continue to build together for years to come,” representatives for the two companies told the WSJ in a joint statement.
Not On The Same Page
OpenAI needs Microsoft’s approval to complete its transition into a public-benefit corporation. But the two have not been able to agree on details even after months of negotiations, sources said.
The companies are discussing revising the terms of Microsoft’s investment, including the future equity stake it will hold in OpenAI, according to the sources.
(With inputs from Reuters)
