Pentagon Awards Contracts to 4 Artificial Intelligence Developers

The contracts with Anthropic, Google, OpenAI, and xAI come with a ceiling of $200 million each, to accelerate the military’s adoption of AI systems.

The Pentagon building, headquarters of the Department of Defense, in Arlington, Va., in an undated aerial photo. U.S. Air Force/Getty Images

The U.S. Department of Defense announced on July 14 that it has awarded contracts to four U.S.-based artificial intelligence (AI) developers to address national security challenges.

Anthropic, Google, OpenAI, and xAI will each receive a contracting award with a ceiling of $200 million, according to a statement shared by the Chief Digital and Artificial Intelligence Office.

The office said these four companies would help “develop agentic AI workflows across a variety of mission areas.”

“Agentic AI” refers to systems designed to operate with minimal human input.

Formed in 2021, the Chief Digital and Artificial Intelligence Office is responsible for speeding up the military’s adoption of AI systems.

OpenAI was the first of the four contract awardees to announce its contract with the Chief Digital and Artificial Intelligence Office.

In June, the company unveiled “OpenAI for Government” and said its first partnership under the new initiative would help the Pentagon office identify and prototype new AI tools for administrative operations.

Anthropic has developed the Claude family of AI chatbots.

In June, Anthropic announced the development of custom “Claude Gov” models intended for national security clients.

The company said agencies operating at the highest level of the U.S. national security sector are already using these AI models.

Formed by billionaire entrepreneur Elon Musk in 2023, xAI serves as a parent to X Corp., which operates the social media platform X. Among its services, xAI has developed the Grok AI chatbot.

On July 14, xAI announced “Grok for Government” and confirmed that the service holds contracts with the Department of Defense and the U.S. General Services Administration.

Google Public Sector Vice President Jim Kelly said in a July 14 blog post that the new AI announcement with the Department of Defense would build on a long-standing partnership between Google and the U.S. military.

Kelly said his company would give the military access to its Cloud Tensor Processing Units, which power Google’s current AI applications.

“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,” Kelly wrote.