NAIROBI, Kenya — OpenAI, the maker of ChatGPT, has landed a $200 million (about Sh25.9 billion) contract with the U.S. Department of Defense to develop cutting-edge artificial intelligence tools aimed at strengthening national security.
In a statement released Monday, the Pentagon confirmed that the AI powerhouse will create “prototype frontier AI capabilities” to tackle critical challenges in both military operations and broader government enterprise functions.
In short: OpenAI’s tech won’t just be answering questions—it could be shaping the future of digital warfare.
The multi-million-dollar deal marks a significant step in the U.S. government’s increasing embrace of AI, even as it walks a fine line between innovation and regulation.
Earlier this year, the White House issued guidelines pushing federal agencies to support a competitive AI ecosystem—but notably carved out national defense from those rules, giving the Pentagon wider latitude in sourcing powerful AI systems.
And OpenAI has the momentum. As of June, the company’s annualized revenue run rate had climbed to a staggering $10 billion, riding the wave of global AI adoption.
Just three months earlier, the company said it planned to raise as much as $40 billion in a funding round led by Japan’s SoftBank, eyeing a $300 billion valuation.
OpenAI also boasted 500 million weekly active users as of March, solidifying its status as one of the most influential players in the tech world today.
The Defense Department deal signals a shift in how AI firms like OpenAI are positioning themselves—not just as consumer-facing chatbots or coding copilots, but as pivotal players in shaping the next era of national security infrastructure.
And with billions in funding and government backing, OpenAI is clearly not just playing around with words anymore.
