OpenAI has won a one‑year, up to $200 million Other Transaction Authority (OTA) contract from the U.S. Department of Defense’s CDAO to prototype “frontier AI” tools for warfighting and enterprise uses. Based in the National Capital Region, the project, running through July 2026, aims to support administrative functions, healthcare, acquisition analytics, and proactively defend against cyber threats.
This marks OpenAI’s first direct Pentagon deal and kicks off its “OpenAI for Government” initiative. It signifies a shift in policy after revoking a prior ban on military use in 2024
