OpenAI, Carahsoft Partner for AI in Defense Industry Contracts 

OpenAI collaborated with government contractor Carahsoft, to gain access allowing the Pentagon to purchase AI in defense industry services. 

OpenAI collaborated with government contractor Carahsoft, to gain access to the Department of Defense (DoD) ‘s Computer Hardware, Enterprise Software and Solutions (CHESS) program, allowing the Pentagon to easily purchase AI in defense industry services. 

This partnership raises concerns about the use of AI in defense sector applications, along with Carahsoft’s legal disputes over assumed price-fixing in Department of Defense contracts. 

The main goal behind CHESS program is to streamline the process for the pentagon to buy technology services from private companies, as this also makes some administrative tasks easier.  

This efficiency is particularly important as the demand of AI in defense industry grows, allowing the DoD to more easily acquire AI solutions for military capabilities and operational efficiency.  

The DoD can acquire products and services from tech companies, including OpenAI, Google, Microsoft, and HP, without having to engage in protracted discussions. 

Carahsoft Under Scrutiny 

The collaboration between these two companies has now made easier to the Pentagon to access such technologies, particularly in AI in aerospace and defense, yet the government contractor is still facing problems. 

 This week, FBI agents attacked its offices, and this is linked to a previous business partner. According to Bloomberg, the company is also under question for purportedly manipulating the prices of defense contracts with SAP, igniting questions about the transparency of its operations in the AI in war and defense sector.  

It is important to note that Carahsoft has already been the subject of such inquiry. It ended the issue of a $75 million charge with cloud computing company VMware in 2015 after being accused of offering the government higher prices. 

OpenAI’s Government Spot 

OpenAI has secured several government contracts that extend beyond the military sector, reflecting the increasing role of generative AI in defense. In 2023, the company also participated in webinars hosted by Carahsoft, showcasing how AI tools like ChatGPT can serve as powerful assistants for government agencies. These tools enable agencies to complete tasks more quickly and efficiently, boosting productivity and streamlining operations.  

This highlights how AI in defense industry is evolving, with generative AI offering new ways to enhance both military and non-military government functions. 

Altman’s company is lately working on the development of models that cover various fields from data analysis and translation to drafting policy memos. 

Additionally, it has been participating in projects with the US military that primarily focus on the establishment AI tools specially structured to counter cyberattacks by automatically detecting and repairing system weaknesses. 

Zohaib Ahmed, CEO of Resemble AI, has asserted that the reputation factor of Carahsoft plays an important role in opening public sector opportunities for their company. 

“Startups typically have a difficult time surfacing their technologies into the public sector,” Ahmed told Forbes. Partnering with Carahsoft gives smaller companies a way to introduce their innovations to government agencies. 


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