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OpenAI’s $200M DoD contract could squeeze frenemy Microsoft


The contract could put the model maker in competition with the OpenAI services that Microsoft wants to sell to the DoD.

OpenAI said Monday the U.S. Department of Defense granted it a contract for up to $200 million to help the agency identify and build prototype systems that use its frontier models for administrative tasks and more. It says, “Under this award, the performer will develop prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains.” Given how heavily some powerful people in Silicon Valley have warned of the dangers of China’s advanced LLM models, it’s not surprising the DoD wants to use OpenAI for whatever purposes it wants.

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