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OpenAI is reportedly planning to sell AI services to the U.S. government through Amazon Web Services.
According to sources cited by media outlets, artificial intelligence (AI) company OpenAI has signed a new agreement to sell the rights to use its AI models through Amazon Web Services to the U.S. Department of Defense and government agencies for handling both confidential and non-confidential work.
It is reported that this contract enables OpenAI to support the Pentagon (U.S. Department of Defense) under an agreement reached at the end of last month. Previously, the Pentagon had abandoned its original AI supplier, Anthropic.
Anthropic, the developer of the Claude model, ended its partnership with the U.S. government in late February this year after refusing to allow its AI to be used unrestrictedly for military purposes, especially in domestic surveillance and autonomous weapons.
Subsequently, the Pentagon listed Anthropic as a “supply chain risk,” marking the first time the U.S. has taken such action against a domestic company. Previously, this treatment was typically reserved for suppliers from hostile nations.
After Anthropic faced resistance from the U.S. government, OpenAI announced that it had reached an agreement to deploy its technology on the Department of Defense’s classified networks.
Several government agencies, including the U.S. State Department, have stopped using Claude and switched to models from competitors such as OpenAI and Google.
For example, the U.S. State Department reportedly replaced the model used in its internal chatbot, StateChat, with GPT-4.1.
Last Monday, Anthropic filed lawsuits in two courts against the U.S. Department of Defense and other agencies, claiming that the Pentagon’s decision to list it as a “supply chain risk” was illegal and infringed on its constitutional rights, including free speech.
As one of OpenAI’s main competitors, Anthropic is generally considered to be ahead of OpenAI in the enterprise AI market and has higher adoption among corporate clients.
By the end of last month, OpenAI’s enterprise business generated an annualized revenue of approximately $10 billion, while Anthropic’s total annualized revenue was about $25 billion.
On Monday, media reports indicated that OpenAI is in talks with several private equity firms to establish a joint venture aimed at expanding its enterprise AI products to these firms’ portfolio companies and beyond.
The reports also stated that Anthropic is actively seeking partnerships with private equity firms, also through joint ventures, to sell its Claude AI technology to companies invested in by these firms.
Notably, in OpenAI’s latest funding round completed at the end of last month, Amazon committed to investing $50 billion, surpassing Nvidia and SoftBank Group, both of which pledged $30 billion.
Additionally, OpenAI announced a multi-year strategic partnership with Amazon. The company will expand its existing $38 billion collaboration with AWS over the next eight years to $100 billion. AWS will also become the exclusive third-party cloud distribution provider for OpenAI’s enterprise platform, Frontier.