OpenAI's DoD contract challenges Microsoft's government sales

OpenAI secured a $200 million contract with the U.S. Department of Defense, potentially creating competition with its major investor, Microsoft. The contract tasks OpenAI with developing prototype AI systems for the DoD, focusing on administrative tasks and national security challenges. This includes streamlining data and supporting cyber defense, according to OpenAI. This deal could strain the relationship between OpenAI and Microsoft, which has a long-standing partnership with the DoD and recently secured approval for its Azure OpenAI Service for classified levels.