The U.S. Department of Defense has signed a $200 million contract with OpenAI to develop and deploy advanced artificial intelligence tools aimed at bolstering national security and modernizing military operations.

The agreement marks the San Francisco-based AI company’s first formal collaboration with the federal government. Known for creating ChatGPT, OpenAI will now work closely with the Pentagon to explore how its AI systems can assist in both combat environments and administrative functions across the armed forces.

Defense officials said the initiative will focus on testing cutting-edge AI capabilities to tackle complex security challenges. Potential applications include streamlining healthcare services for service members, automating back-office tasks, and enhancing cyber defense systems.

OpenAI emphasized that any military use of its technology will remain within the boundaries of its internal safety and ethical standards. The company reiterated its mission to ensure AI development aligns with democratic values and serves the broader public good.

“This collaboration reflects our commitment to ensuring AI is used responsibly and to benefit society,” OpenAI stated.

The deal highlights a growing movement among tech giants—including Meta, Palantir, and now OpenAI—to deepen partnerships with the U.S. military. It also follows OpenAI’s 2024 alliance with defense contractor Anduril Industries, aimed at developing AI-driven tools to counter unmanned aerial threats.

At the time, OpenAI CEO Sam Altman stressed the company’s role in supporting secure and ethical AI development, stating, “OpenAI builds AI to benefit as many people as possible, and supports U.S.-led efforts to ensure the technology upholds democratic values.”

The $200 million contract signals a significant expansion of OpenAI’s role in national defense, underscoring the increasing influence of artificial intelligence in shaping the future of military strategy and government operations.