OpenAI Won a $200M Defense Contract, Good for PLTR, MSFT, NVDA

OpenAI has indeed secured a $200 million contract with the United States Department of Defense. This contract represents OpenAI's first collaboration in applying artificial intelligence technology within the government sector.

According to statements from the Department of Defense, this one-year contract aims to develop prototype cutting-edge AI capabilities to address critical national security challenges in both warfighting and enterprise domains. Additionally, OpenAI plans to demonstrate how cutting-edge AI can significantly improve administrative operations, such as how military personnel receive healthcare and cyber defense. All military applications of AI will comply with OpenAI's usage guidelines.

At the same time, the company anounces OPENAI HAS DECIDED TO DEPRECATE GPT-4.5

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The news that OpenAI has secured a $200 million contract with the U.S. Department of Defense may have a positive impact on the following U.S. stocks and ETFs:

1. $Palantir Technologies Inc.(PLTR)$ : As a well-known defense software company with a long-standing relationship with the U.S. Department of Defense, Palantir may continue to benefit from the development of defense technology, even though the OpenAI contract could increase competition.

   

2. $Microsoft(MSFT)$ : As a partner of OpenAI, Microsoft may benefit indirectly from OpenAI's collaboration with the Department of Defense, particularly in AI model development and infrastructure projects.

   

3. $NVIDIA(NVDA)$ : Nvidia's GB200 chips are used in OpenAI's Stargate infrastructure project, which involves AI model development, so Nvidia may benefit from OpenAI's defense contract.