ChatGpt developer Openai launched a new division on Monday, further integrating artificial intelligence tools into the US government’s operations. This starts with a $200 million pilot contract with the US Department of Defense.
Musk’s Xai has been left behind, but this isn’t surprising given the epic explosion that the world’s wealthiest man had with President Donald Trump earlier this month.
A new federal initiative called Openai for Government will consolidate our existing public sector projects under one umbrella and expand access to the most advanced models.
“In these efforts, we aim to improve our daily experience in public services and help government employees feel more empowered, efficient and more supported on more important missions,” Openai said in a statement.
According to Openai, the Department of Defense pilots, awarded through the Chief Digital and Artificial Intelligence Office, explore how the generated AI can streamline non-combat tasks, declaring that “all use cases must match Openai usage policies and guidelines.”
Openai said the deal was in line with the policy of not allowing AI tools for military purposes, but the company faced scrutiny after quietly removing its ban on using ChatGPT for military purposes in January 2024.
Other federal agencies already working with OpenaI include NASA, the National Institutes of Health, the Treasury Department, and the Air Force Research Institute.
Additionally, Openai models have been deployed in Los Alamos, Lawrence Livermore, and Sandia National Laboratories.
In January, Openai, Oracle and Japanese conglomerate Softbank worked with the Trump administration to launch Stargate, a $500 billion private sector initiative for US AI development
Xai has not been completely locked out of the federal government.
The unnamed source said Reuters A customized version of Grok, the Xai chatbot, was used to analyze Department of Homeland Security data.
DHS denied the allegation.
Edited by Sebastian Sinclair and Josh Quittner

