OpenAI Launches New Division

OpenAI launched a new division on Monday aimed at integrating its AI tools into U.S. government operations, starting with a $200 million pilot contract with the U.S. Department of Defense.

Musk’s xAI has been sidelined due to recent controversies involving President Trump.

The initiative, called OpenAI for Government, consolidates existing public-sector projects and enhances access to advanced AI models. OpenAI stated, “Across these efforts, we’re aiming to improve both the day-to-day experience of public service and to help government employees feel more empowered, more efficient, and more supported in their critical missions.”

The Department of Defense pilot, awarded through its Chief Digital and Artificial Intelligence Office, will explore how generative AI can streamline non-combat tasks while ensuring compliance with OpenAI’s usage policies.

Despite OpenAI’s commitment to not using AI tools for military applications, scrutiny arose in January 2024 after the company lifted its ban on ChatGPT’s military use.

OpenAI is also working with other federal agencies, including NASA and the National Institutes of Health. Its AI models are deployed in various laboratories such as Los Alamos and Sandia.

Additionally, OpenAI, Oracle, and Softbank partnered with the Trump Administration in January to launch Stargate, a $500 billion initiative for AI development in the U.S.

Notably, xAI is not entirely excluded from federal operations. Reports indicate that a customized version of xAI’s Grok chatbot analyzes data for the Department of Homeland Security, raising concerns about potential conflicts of interest. The DHS has denied these claims.

Edited by Sebastian Sinclair and Josh Quittner