Pentagon awards AI contracts to tech giants for defense applications
The U.S. Department of Defense's CDAO has awarded contracts worth up to $200 million each to Anthropic, Google, OpenAI, and xAI to develop AI workflows for defense missions.
The U.S. Department of Defense’s Chief Digital and Artificial Intelligence Office (CDAO) has awarded contracts worth up to US$200 million each to four leading AI firms: Anthropic, Google, OpenAI, and xAI.
Key Details
- Purpose: Develop "agentic AI workflows across a variety of mission areas" for defense applications.
- Scope: Contracts highlight the growing integration of AI into national security and military operations.
- Context: The Trump administration is actively pushing AI adoption in government, aiming to dominate the field globally and increase military spending.
Company Involvement
- Anthropic: Recently launched Claude Gov models tailored for national security.
- Google: Updated its AI policies to align with defense needs, as reported by The Washington Post.
- OpenAI: Partnered with Anduril to advance U.S. AI leadership, per Anduril’s announcement.
- xAI: Teased defense-focused AI capabilities in a recent tweet.
Broader Trend
- Canadian Firm Cohere: Also positioning its AI tools for defense intelligence, including a contract with Canada’s Communications Security Establishment (The Logic report).
- Global Competition: The U.S. is accelerating AI adoption to maintain a strategic edge, as seen in recent policies like the White House’s AI procurement guidelines.
Published: Jul 14, 2025 | 3:44 PM ET
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Alex Thompson
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Senior technology editor specializing in AI and machine learning content creation for 8 years. Former technical editor at AI Magazine, now provides technical documentation and content strategy services for multiple AI companies. Excels at transforming complex AI technical concepts into accessible content.