AI Firms Secure Government Deals

AI Firms Secure Government Deals

23 July 2025

OpenAI has formalised a partnership with the UK government to explore AI deployment across public services and the private sector. The collaboration aims to improve civil servant efficiency and support businesses using AI. This includes exploring UK-based data centre capacity and strengthening ties with the UK AI Security Institute. OpenAI also intends to expand its London office.

In the US, xAI has secured a contract with the Pentagon, potentially worth up to $200 million, to provide AI capabilities for national security missions. This deal involves xAI's Grok model and the launch of 'Grok for Government', offering AI tools for federal agencies. The Pentagon aims to leverage AI for intelligence analysis, logistics, and data collection. Other companies, including Google and Anthropic, have also been awarded contracts.

These agreements highlight the increasing strategic importance of AI for governments, with a focus on national security and public service applications.

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Published on 23 July 2025
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