PYMNTS.com July 23, 2025
The Pentagon awarded contracts worth up to $200 million each to Anthropic, Google, OpenAI and xAI to accelerate AI adoption.
The Department of Defense is pursuing agentic AI systems to enhance battlefield planning, decision-making and readiness.
While AI offers advantages, experts warn of escalation risks and call for safeguards in military use.
The Pentagon recently awarded up to $200 million each to four U.S.-based artificial intelligence (AI) companies developing “frontier” models: Anthropic, Google, OpenAI and xAI. The contracts are the latest sign of AI adoption across the U.S. military.
The Chief Digital and Artificial Intelligence Office (CDAO) said its goal was to accelerate the Department of Defense’s (DoD) adoption of agentic AI capabilities to “address national security challenges.”
CDAO head Doug Matty...







