Pentagon’s $800M AI Investment Targets National Security Through Tech Leaders
Pentagon Signs Agreement With OpenAI, Anthropic, Google, xAI. Each AI Leader Secured Contract Upto $200 Million
Pentagon has signed important deals with some of the biggest names in artificial intelligence that are Anthropic, Google, OpenAI and Elon Musk’s xAI. The defence agreements are aimed at harnessing state-of-the-art AI tools in its defense operations.
According to official media reports, the Pentagon’s agreements are aimed at using the latest AI tools in its defense operations.
Each company has secured contracts worth up to $200 million to help the Pentagon address growing national security challenges using state-of-the-art AI systems. The total funding across all four companies could therefore reach up to $800 million collectively, as these are separate awards.
U.S. government agencies have been expanding their use of AI, driven by a White House order in April promoting adoption. President Donald Trump has also moved to soften regulation on the technology by revoking a 2023 Biden-era executive order, which sought to reduce AI risks through mandatory data disclosures.
Doug Matty, Chief Digital and Artificial Intelligence Officer of the Department of Defense, said the agreements would help develop AI workflows and use them to address key national security challenges.
“Adopting AI will increase our ability to support fighters and maintain a strategic advantage over our adversaries.
It should be noted that US government agencies are increasing their use of AI. US President Donald Trump has also moved towards relaxing regulations on technology by revoking a 2023 Biden-era executive order that seeks to reduce the risks of AI data.
On the other hand, xAI also launched its product, “Grok for Government”, making its latest AI models, including its latest flagship Grok 4, available to federal, local, state and national security customers.
OpenAI previously secured a year-long $200 million contract from the DoD in 2024 and launched “OpenAI for Government” in June for U.S. federal, state, and local government workers.
“America is the world leader in AI,” xAI said in Monday’s post announcing the Pentagon deal. “We’re excited to contribute back to the country that made xAI uniquely possible here.”
