Published by Global Banking & Finance Review®
Posted on July 14, 2025
1 min readLast updated: January 22, 2026
Add as preferred source on GoogleThe US Department of Defense awards AI contracts to Google, xAI, and others, aiming to enhance national security with advanced AI technologies.
(Reuters) -OpenAI, Alphabet's Google, Anthropic and Elon Musk's AI firm xAI have won contracts aimed at scaling up adoption of advanced AI capabilities in the U.S. Department of Defense, the Chief Digital and Artificial Intelligence Office said on Monday.
Each of the contracts has a $200 million ceiling and will enable the DoD to develop agentic AI workflow and use them to address critical national security challenges, the office said.
"Establishing these partnerships will broaden DoD use of and experience in frontier AI capabilities and increase the ability of these companies to understand and address critical national security needs," it said.
The Pentagon last month announced OpenAI was awarded a $200 million contract, saying the ChatGPT maker would "develop prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains."
The White House's Office of Management and Budget released new guidance in April, directing federal agencies to ensure that the government and "the public benefit from a competitive American AI marketplace.
(Reporting by Deborah Sophia in Bengaluru; Editing by Shilpi Majumdar)
The companies awarded contracts include OpenAI, Alphabet's Google, Anthropic, and Elon Musk's AI firm xAI.
Each of the contracts has a ceiling of $200 million.
The contracts aim to scale up the adoption of advanced AI capabilities to address critical national security challenges.
The White House's Office of Management and Budget released guidance directing federal agencies to ensure the public benefits from a competitive American AI market.
The Pentagon announced that OpenAI was awarded a $200 million contract to develop prototype frontier AI capabilities for national security challenges.
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