The US Department of Defense has awarded contracts worth up to $200 million to several top AI companies including Anthropic, Google, OpenAI and xAI.
The US Department of Defense plans to award up to $200 million in contracts to top artificial intelligence (AI) companies. It was confirmed on Tuesday that Anthropic, Google, OpenAI, and Elon Musk’s xAI will be contracted by the government agency.
In a bid to improve national security, each firm will help to develop new AI tools to support the military. One of the main aims of this major partnership is to speed up the use of advanced AI systems. It is expected that the companies will create AI agents that can be used across different areas of the department.
Commenting on the announcement, Doug Matty, Chief Digital and Artificial Intelligence Officer at the agency, said it presents many advantages. In a press release, he claimed the deal will help the department accelerate its adoption of “advanced AI capabilities to address critical national security challenges.”
Matty explained how AI is changing the way the military supports soldiers and stays ahead of rivals. He added: “The adoption of AI is transforming the Department’s ability to support our warfighters and maintain strategic advantage over our adversaries”.
The scale of the contracts awarded is a symbol of the importance the Pentagon places on AI technology. AI looks set to play a key part in the future strategy and operations of the US military moving forward.
Elon Musk’s AI company announces wider government deal
On the same day as the AI defence deal, Elon Musk’s xAI company announced a new government venture. Called “Grok for Government”, it features a suite of products that make the company’s models available to US government customers.
The General Services Administration (GSA) will offer xAI products through its schedule. In a post on X, the company revealed that US federal government departments, agencies, or offices will be able to purchase its products more easily.
OpenAI, one of the other companies involved, had already received a $200 million contract earlier this year. Officials linked that deal to OpenAI’s work with defence tech company Anduril to develop AI systems for national security purposes.
Meanwhile, in June, OpenAI also launched its own “OpenAI for Government” platform for federal, state and local government staff. This model helps public workers use AI to improve their decision-making efficiently.
This latest round of AI defence investment shows the US government’s strong interest in using advanced technology to maintain national security. By working with prominent AI companies, the administration aims to use smarter tools to protect the country and support its military missions.
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