OpenAI to sell AI to US agencies through Amazon cloud unit

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AdvertisementAdvertisementBusinessThe OpenAI logo, a keyboard, and robot hands are seen in this illustration taken January 27, 2025. REUTERS/Dado Ruvic/Illustration17 Mar 2026 09:12PM (Updated: 17 Mar 2026 09:43PM) Bookmark Bookmark WhatsApp Telegram Facebook Twitter Email LinkedInAdd CNA as a trusted source to help Google better understand and surface our content in search results.Read a summary of this article on FAST.Get bite-sized news via a newcards interface. Give it a try.Click here to return to FAST Tap here to return to FASTFAST March 17 : OpenAI has signed a new deal to sell access to its AI models to U.S. defense and government agencies through Amazon's cloud unit for classified and unclassified work, the ChatGPT maker said on Tuesday.The contract enables OpenAI to support the Pentagon under a deal it secured late last month, after the agency dropped its previous AI provider, Anthropic.Anthropic, which won a Pentagon contract worth up to $200 million in July 2025, had been a key U.S. defense AI supplier, working with Palantir and Amazon Web Services (AWS) to deploy its Claude models in classified military and intelligence systems.But its relationship with the Pentagon collapsed in February after Anthropic refused to allow unrestricted military use of its AI, particularly for domestic surveillance and autonomous weapons. Following which, the Pentagon labeled it a "supply chain risk" and effectively cut it off from government work.Show MoreShow LessOpenAI, which had previously focused on unclassified government use, has now secured a Pentagon contract to provide its models for classified operations.Its partnership with AWS builds on this latest shift, reflecting how access to government and defense contracts, especially via cloud providers already embedded in federal systems, is becoming a key battleground.Securing government contracts could also help the ChatGPT maker attract large corporate clients, which often see high-stakes public sector work as a strong signal of trust and reliability.Following OpenAI's transition to a for-profit structure last fall, the company updated its agreement with Microsoft to allow partnerships with rival cloud providers in selling AI to national security customers, including the Pentagon.Source: ReutersNewsletterWeek in ReviewSubscribe to our Chief Editor’s Week in ReviewOur chief editor shares analysis and picks of the week's biggest news every Saturday.Sign up for our newslettersGet our pick of top stories and thought-provoking articles in your inboxSubscribe hereGet the CNA appStay updated with notifications for breaking news and our best storiesDownload hereGet WhatsApp alertsJoin our channel for the top reads for the day on your preferred chat appJoin hereAlso worth readingContent is loading...Expand to read the full storyGet bite-sized news via a newcards interface. Give it a try.Click here to return to FAST Tap here to return to FASTFAST