Defense Dept. Awards $200M for AI to Anthropic, Google, OpenAI, xAI

Published Date : 15/07/2025 

The U.S. Department of Defense (DoD) has awarded contracts worth up to $200 million to Anthropic, Google, OpenAI, and xAI for the development of advanced AI capabilities to enhance national security. 

The U.S. Department of Defense (DoD) announced on Monday that it is granting contract awards of up to $200 million to four leading artificial intelligence (AI) companies: Anthropic, Google, OpenAI, and xAI. The DoD’s Chief Digital and Artificial Intelligence Office stated that these awards aim to accelerate the adoption of advanced AI capabilities to address critical national security challenges.

The DoD’s Chief Digital and AI Officer, Doug Matty, emphasized the transformative impact of AI on the department’s ability to support warfighters and maintain a strategic advantage over adversaries. “The adoption of AI is transforming the Department’s ability to support our warfighters and maintain strategic advantage over our adversaries,” Matty said in a release.

Elon Musk’s xAI also announced the launch of Grok for Government on Monday. This suite of products makes the company’s AI models available to U.S. government customers. The products are accessible through the General Services Administration (GSA) schedule, which facilitates purchases by federal government departments, agencies, or offices, according to a post on X.

OpenAI, one of the recipients of the DoD contract, was previously awarded a year-long $200 million contract from the DoD in 2024. This contract came shortly after OpenAI announced a collaboration with defense technology startup Anduril to deploy advanced AI systems for national security missions. In June, OpenAI launched OpenAI for Government, a program designed for U.S. federal, state, and local government workers.

The collaboration between the DoD and these AI companies represents a significant step in the integration of advanced AI technologies into national security operations. These partnerships are expected to enhance the capabilities of the U.S. military and other government agencies, ensuring they remain at the forefront of technological advancements in a rapidly evolving global landscape.

The DoD’s investment in AI is part of a broader strategy to leverage cutting-edge technologies to address complex security challenges. By working with leading AI companies, the DoD aims to develop and deploy AI agents across various mission areas, from intelligence gathering to operational planning and execution.

The contracts awarded to Anthropic, Google, OpenAI, and xAI underscore the growing importance of AI in national defense and the commitment of the U.S. government to harness these technologies for the benefit of the nation’s security. These partnerships are expected to drive innovation and ensure that the U.S. maintains a technological edge in an increasingly competitive global environment. 

Frequently Asked Questions (FAQS): 

Q: What is the total amount of the contract awarded by the U.S. Department of Defense?

A: The total amount of the contract awarded by the U.S. Department of Defense is up to $200 million.

Q: Which companies received the contract awards from the DoD?

A: The companies that received the contract awards from the DoD are Anthropic, Google, OpenAI, and xAI.

Q: What is the primary goal of these contract awards?

A: The primary goal of these contract awards is to accelerate the adoption of advanced AI capabilities to address critical national security challenges.

Q: What is Grok for Government, and who announced it?

A: Grok for Government is a suite of products that makes xAI's AI models available to U.S. government customers, announced by Elon Musk’s xAI.

Q: What is OpenAI for Government, and when was it launched?

A: OpenAI for Government is a program designed for U.S. federal, state, and local government workers, and it was launched in June. 

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