The Defense Department’s Chief Digital and Artificial Intelligence Office on Monday awarded four tech companies individual contracts valued at up to $200 million to provide advanced AI capabilities to address national security challenges.
The awards were issued to Anthropic, Google, OpenAI and xAI.
“The adoption of AI is transforming the Department’s ability to support our warfighters and maintain strategic advantage over our adversaries,” Chief Digital and AI Officer Dr. Doug Matty said in a statement. “Leveraging commercially available solutions into an integrated capabilities approach will accelerate the use of advanced AI as part of our Joint mission essential tasks in our warfighting domain as well as intelligence, business, and enterprise information systems.”
Under the contract, the Defense Department can deploy the latest AI offerings, agentic AI workflows, large language models and technologies developed by these firms.
“These advanced AI solutions will enable the DoD to effectively address defense challenges and scale the adoption of agentic AI across enterprise systems to drive innovation and efficiency with agile, proven technology,” Jim Kelly, VP of Federal Sales for Google Public Sector, said in a blog post immediately following the Pentagon’s award notices.
Broadly, the Pentagon’s AI awards exemplify how important the technology is to the Pentagon. In June, the Defense Department awarded a similar contract to OpenAI for Government to develop AI prototypes, months after Microsoft’s OpenAI-enabled Azure offerings were approved for use at the highest security classification level. Meanwhile, other AI firms like Anthropic have forged partnerships with cloud service providers and built out public sector teams to serve national security missions.
A key driver behind this momentum could be the larger pool of money the Pentagon is aiming to get for AI. The Defense Department’s latest budget request seeks billions of dollars for AI and autonomous systems for everything from autonomous “wingman” fighter drones to AI research and development, robotics development and other emerging technologies.
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