OpenAI has received a potential $200 million other transaction agreement from the Department of Defense’s Chief Digital and Artificial Intelligence Office, or CDAO, to build frontier AI prototypes designed to address critical national security challenges in warfighting and enterprise areas.
DOD said Monday work on the prototype OTA will primarily occur in the National Capital Region through July 2026.
CDAO is obligating $1.9 million in fiscal 2025 research, development, test and evaluation funds.
In a blog post published Monday, OpenAI said the contract with CDAO will enable it to help DOD determine how frontier AI could help analyze acquisition and program data, support proactive cyber defense, improve the delivery of healthcare to service personnel and their families, and transform administrative operations.
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OpenAI for Government
The ChatGPT developer said the CDAO contract represents the first partnership under the new OpenAI for Government initiative, which seeks to provide advanced AI tools for government employees so that they can focus more on high-impact work.
Through the initiative, OpenAI will provide U.S. federal, state and local government agencies with access to AI models, including ChatGPT Enterprise and ChatGPT Gov; custom models for national security; hands-on support; and insight into future AI tools to enable government agency clients to plan ahead on how to apply AI technologies to their work.
Partnership With Anduril
In December, OpenAI partnered with Anduril Industries to integrate its AI technology with the latter’s counter-unmanned aircraft systems and Lattice software network to improve U.S. defense systems that protect U.S. and allied personnel against drones and other aerial attacks.
