OpenAI Signs Pentagon Deal For Classified Use

OpenAI reached an agreement with the Pentagon to deploy its advanced AI systems in classified environments, following the removal of a prior military ban in January 2024. Wired reported the Pentagon had been testing Microsoft’s Azure OpenAI service as early as 2023, and OpenAI subsequently launched a government program with a $200 million contract ceiling. The move coincided with the Defense Department designating Anthropic a supply-chain risk after failed negotiations.