The U.S. Department of Defense has awarded a $200 million contract to OpenAI to build advanced artificial intelligence tools (AI) supporting military and government operations, the Pentagon announced Monday.

“Under this award, the performer will develop prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains,” the Pentagon said in a statement.

The Office of the Secretary of Defense’s Chief Digital and Artificial Intelligence Office (CDAO) in Washington, D.C., will oversee the contract, which is set to run through July 2026.

Although specific tasks under the contract have not been disclosed, the CDAO has previously outlined the key focus areas of its newly launched Artificial Intelligence Rapid Capabilities Cell, including command and control, logistics, intelligence, cybersecurity, and software development.

In a press release on Monday announcing its new “OpenAI for Government” initiative, the company highlighted the $200 million deal with the CDAO, noting that the partnership will help the Pentagon “identify and prototype how frontier AI can transform its administrative operations — from improving healthcare access for service members and their families to streamlining program and acquisition data and supporting proactive cyber defense.”

Additionally, OpenAI said the new initiative will provide customers with access to its “most capable” models in “secure and compliant environments,” including through ChatGPT Enterprise and ChatGPT Gov.

Katrina Mulligan, who leads OpenAI’s national security partnerships and previously served at the Defense Department, called the agreement a significant milestone. 

“The $200 million ceiling reflects the Department’s trust in OpenAI to responsibly bring frontier AI into mission-critical settings,” she told DefenseScoop.