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US defense department awards contracts to Google, Musk's xAI
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US defense department awards contracts to Google, Musk's xAI
Jul 14, 2025 10:08 AM

July 14 (Reuters) - OpenAI, Alphabet's Google,

Anthropic and Elon Musk's AI firm xAI have won contracts aimed

at scaling up adoption of advanced AI capabilities in the U.S.

Department of Defense, the Chief Digital and Artificial

Intelligence Office said on Monday.

Each of the contracts has a $200 million ceiling and will

enable the DoD to develop agentic AI workflow and use them to

address critical national security challenges, the office said.

"Establishing these partnerships will broaden DoD use of and

experience in frontier AI capabilities and increase the ability

of these companies to understand and address critical national

security needs," it said.

The Pentagon last month announced OpenAI was awarded a $200

million contract, saying the ChatGPT maker would "develop

prototype frontier AI capabilities to address critical national

security challenges in both warfighting and enterprise domains."

The White House's Office of Management and Budget released

new guidance in April, directing federal agencies to ensure that

the government and "the public benefit from a competitive

American AI marketplace.

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