OpenAI has entered a partnership with government contractor Leidos, aiming to integrate artificial intelligence tools to enhance the efficiency and effectiveness of federal operations, according to a press release issued on Thursday. The collaboration is framed as a transformative effort to support national priorities, particularly in areas such as national security and defense.
With a market capitalization of approximately $24 billion, Leidos is well-established in federal contracting, akin to companies like Sun Microsystems and Oracle. Despite its significant role, Leidos maintains a low public profile, focusing primarily on its government partnerships rather than consumer-facing branding.
The partnership seeks to weave OpenAI’s technologies into the workflows of various federal agencies, including those involved in infrastructure and defense. Ted Tanner, Leidos’ Chief Technology Officer, stated, “Leidos and OpenAI are harnessing the transformative power of AI to help improve how federal agencies operate.”
Leidos has long been entrenched in federal operations, managing procurement, logistics, and other services critical to government functions. The company has previously navigated challenges posed by outdated software systems that have complicated budget processes, particularly during the DOGE budget cuts last year.
Interestingly, Leidos experienced a notable budget rollercoaster with the DOGE announcement in February, where they initially faced a contract cancellation worth $1 billion. However, the decision was quickly reversed, with the reassessed value of the canceled contract dropping to $560,000. Brandon Ver Velde, a Leidos spokesman, emphasized the company’s commitment to fostering a more efficient federal government, stating, “We strongly support the goal of creating a dramatically more efficient and effective federal government that costs taxpayers less money.”
In a recent statement, Roy Stevens, president of Leidos’ “Homeland Sector,” highlighted the company’s robust relationship with the Department of Homeland Security (DHS). According to Stevens, Leidos plays a crucial role in supporting cross-agency intelligence sharing and secure collaboration, which aids DHS in its mission to protect the homeland.
Prior to this partnership, OpenAI had already launched a product specifically tailored for governmental use, dubbed OpenAI for Government. The product was introduced following a contract awarded to OpenAI by the Pentagon, which has a ceiling of $200 million. Before this significant deal, OpenAI had also secured contracts with various federal entities, including U.S. National Labs, the Air Force Research Laboratory, NASA, the National Institutes of Health (NIH), and the Department of the Treasury.
In light of the sensitive nature of the work Leidos conducts with the DHS, Gizmodo reached out to OpenAI for a comment regarding this partnership. The DHS oversees several controversial agencies, including Homeland Security Investigations, Customs and Border Protection (CBP), and Immigration and Customs Enforcement (ICE). Updates from OpenAI on this inquiry are pending.
The collaboration between OpenAI and Leidos represents a significant step in the federal government’s ongoing efforts to leverage advanced technologies like AI to improve operational efficiency. As these technologies continue to evolve, their integration into government operations could fundamentally reshape how agencies fulfill their missions.
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