The US Department of Defense has awarded OpenAI a$200 million contract to develop prototype generative AI tools for military use. According to a statement from the Pentagon, the goal is to create 'frontier AI capabilities' for both combat and enterprise applications.

However, this marks OpenAI's first government collaboration under a new initiative to deploy AI in the public sector. The company said its tools could improve internal processes like healthcare access for service members and enhance cybersecurity.

The company stated that all defence-related AI use would remain within OpenAI's usage policies.

The contract places OpenAI among many tech firms working with the military. Palantir and Meta are already active in the defence space, while OpenAI has also partnered with defence startup Anduril to build AI-powered tools for counter-drone and surveillance missions.

CEO Sam Altman emphasized that OpenAI's involvement aligns with US-led efforts to ensure AI supports democratic values.