OpenAI Wins $200 Million US Defense Contract - 1

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OpenAI Wins $200 Million US Defense Contract

  • Written by Andrea Miliani Former Tech News Expert
  • Fact-Checked by Sarah Frazier Former Content Manager

The U.S. Defense Department awarded OpenAI a $200 million contract on Monday to develop artificial intelligence technologies for national security. The one-year deal will be carried out primarily in Washington and is expected to continue through July 2026.

In a rush? Here are the quick facts:

  • The U.S. Department of Defense awarded OpenAI a one-year, $200 million contract.
  • The project will address critical national security challenges across both warfighting and enterprise domains.
  • OpenAI will include this agreement under its new initiative, OpenAI for Government.

According to the recent Contracts announcement published by the U.S. Department of Defense, with the new funding, OpenAI will research, develop, test, and evaluate technologies to address national security concerns. The project will be conducted in collaboration with the Department’s Chief Digital and Artificial Intelligence Office (CDAO).

“Under this award, the performer will develop prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains,” states the document.

OpenAI said that the new agreement falls under its latest initiative, OpenAI for Government, alongside other partnerships and projects—such as ChatGPT Gov⁠—with government entities including the U.S. National Labs, Treasury, NASA, the Air Force Research Laboratory, and the National Institutes of Health (NIH).

“We’re supporting the U.S. government’s efforts in adopting best-in-class technology and deploying these tools in service of the public good,” said OpenAI in an announcement shared on Monday.

The tech giant explained it expects to bring solutions and help workers by developing the most advanced technology and its AI tools to “serve the American people.” The new deal with the CDAO will focus on supporting U.S. defense, considering OpenAI’s policies and guidelines.

“This contract, with a $200 million ceiling, will bring OpenAI’s industry-leading expertise to help the Defense Department identify and prototype how frontier AI can transform its administrative operations, from improving how service members and their families get health care, to streamlining how they look at program and acquisition data, to supporting proactive cyber defense,” said OpenAI.

OpenAI launched ChatGPT Gov , a specialized version of its chatbot specially designed to meet the U.S. government agencies’ needs, in January.

Reddit Becomes Google AI’s Second Most-Cited Source, But Struggles To Retain Users - 2

Image by Mike Moloney, from Stocksnap

Reddit Becomes Google AI’s Second Most-Cited Source, But Struggles To Retain Users

  • Written by Kiara Fabbri Former Tech News Writer
  • Fact-Checked by Sarah Frazier Former Content Manager

Reddit is the second most-cited site in Google AI Overviews. However its’ increased visibility of Reddit on Google does not translate into acquiring the necessary user base.

In a rush? Here are the quick facts:

  • Reddit is the second most-cited site in Google AI Overviews.
  • Most Reddit traffic comes from logged-out users via Google Search.
  • Reddit’s stock fell after Google launched its new AI Mode.

Business Insider reports that the analytics firm Semrush discovered that Reddit now stands as the second most-referenced website in Google’s AI Overviews, after Quora.

The AI Overview tool appears at the top of Google search pages, offering users quick, summarized answers. This format often pulls information from platforms like Reddit and Quora because, as Semrush explains, “Quora and Reddit users often ask and answer niche questions that aren’t addressed elsewhere,” as reported by BI.

Reddit’s frequent appearance in these summaries may not be accidental. In 2024, the platform signed a $60 million deal with Google to let the tech giant train its AI systems on Reddit’s content. Google said this would “facilitate more content-forward displays of Reddit information,” as noted by BI.

While Reddit has seen a boost in traffic thanks to this exposure, most of it is coming from “logged-out” users, meaning visitors who aren’t registered or engaged with the site, says BI. According to Redburn analysts, “These users are much less valuable to Reddit as they are typically just looking for an answer to a query and thus spend little time on the platform,” as reported by BI.

The increased visibility through Google’s AI Overviews does not guarantee that Reddit will see financial benefits. The launch of Google’s AI Mode in May caused Reddit’s stock prices to decrease, as investors believed AI summaries would reduce user traffic to the platform, says BI.