The Pentagon has awarded $800 million in AI contracts to tech giants, including Anthropic, Google, OpenAI, and xAI, aiming to enhance artificial intelligence development for combat planning and back-office tasks.
This signifies a strategic shift for the Pentagon towards commercial AI solutions, moving away from traditional defense contractors to leverage cutting-edge technology from industry leaders.
The contract details include four vendors with $200 million ceilings for two-year prototype deals, focusing on developing 'agentic' AI workflows for warfighting and back-office tasks within existing DoD platforms.
The partnership aims to create a competitive ecosystem and disrupt traditional defense contractors, while raising ethical concerns about autonomy in military systems and highlighting the rapid deployment timeline compared to traditional defense contracts.