- OpenAI has launched a new division focused on public-sector work, signing a $200 million pilot contract with the U.S. Department of Defense.
- The initiative, called OpenAI for Government, will use Artificial Intelligence for non-combat activities such as healthcare improvement and defense data analysis.
- OpenAI’s revised policies now allow certain government and military uses within specific guidelines.
- Other government agencies partnering with OpenAI include NASA, the National Institutes of Health, the Department of the Treasury, and the Air Force Research Laboratory.
- Musk’s xAI was not chosen for the contract, but Reuters reports its Grok AI is used by the Department of Homeland Security, a claim the DHS denies.
OpenAI announced on Monday that it created a new division, OpenAI for Government, to integrate its artificial intelligence technologies with U.S. government operations. The company has started this initiative by signing a $200 million contract with the U.S. Department of Defense for a pilot project.
The new division brings together OpenAI’s existing public-sector efforts under one organization and offers the government access to its most advanced AI models. In its statement, OpenAI said it aims to improve daily public service operations and help government employees be more efficient and empowered in their missions.
According to OpenAI, the Department of Defense contract will explore the use of generative AI to streamline non-combat tasks. The pilot program will be managed through the Chief Digital and Artificial Intelligence Office. “All use cases must be consistent with OpenAI’s usage policies and guidelines,” the company said in an official statement.
Previously, OpenAI did not allow military use of its AI models. However, the company removed its prohibition on military uses in January 2024, attracting public attention and increased scrutiny of its policy changes.
Several other federal agencies already collaborate with OpenAI, including NASA, the National Institutes of Health, the Department of the Treasury, and the Air Force Research Laboratory. OpenAI’s models are also in use at national laboratories like Los Alamos, Lawrence Livermore, and Sandia.
In a separate development, Musk’s xAI partnered with federal agencies through a project using Grok, its chatbot. According to Reuters, Grok is being used to analyze data for the Department of Homeland Security—a claim denied by the department.
Earlier this year, OpenAI, Oracle, and Softbank joined a $500 billion private-sector AI initiative backed by the Trump Administration, known as Stargate, to promote United States AI development.
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