OpenAI and AWS sign agreement to sell artificial intelligence to U.S. government employees

```

OpenAI is accelerating its presence in the U.S. government market, with a strategic path that is increasingly clear: leveraging government contracts as a springboard, replicating Palantir’s successful model, and ultimately entering the high-value enterprise market.

On March 17, according to media reports citing two sources familiar with the matter, OpenAI signed a new contract with Amazon Web Services (AWS) last Friday to provide AI services to U.S. government personnel via AWS, covering both classified and unclassified operations. AWS is already a major cloud service provider for multiple U.S. government agencies and has agreed to sell OpenAI products to other government clients.

This partnership with AWS is a key outcome of OpenAI’s months-long effort to secure government contracts, premised on modifications to the agreement with Microsoft.

Previously, OpenAI’s AI had to be exclusively hosted on Microsoft platforms. After completing a profit-oriented restructuring last autumn, OpenAI signed a new agreement with Microsoft, allowing it to collaborate with competitive cloud service providers such as AWS and sell AI services to national security clients like the Pentagon.

However, there are still differences in application: for unclassified operations of civil agencies such as the Department of Health and Human Services, OpenAI must apply to Microsoft for exemption if it wishes to host AI models on AWS; for agencies involving classified operations, such as the State Department, OpenAI can cooperate directly with AWS without Microsoft’s approval.

Government contracts secure enterprise endorsements, direct revenue limited

For OpenAI, the strategic value of government contracts goes beyond direct income; they act as a stepping stone into the enterprise market, as high-profile government projects are often seen by large enterprises as a trustworthy endorsement of technology suppliers.

Software company Palantir has already validated this path: as a long-term military contractor, it received about $2 billion last year from private sector clients. OpenAI is clearly aiming to emulate this model.

However, the direct value of government contracts themselves is quite limited. According to reports citing a person familiar with the matter, OpenAI’s agreement at the end of last month to provide ChatGPT and custom AI products to three million Department of Defense employees is expected to generate only several million dollars in the next 15 months, a tiny fraction compared to the company’s projected $30 billion total revenue for this year.

Securing defense contracts but losing user trust, OpenAI imposes emergency limits

OpenAI’s presence in the government market has not been smooth. Its rushed signing with the Pentagon at the end of last month sparked a severe user trust crisis.

The contract was signed on February 27, authorizing the Pentagon to use OpenAI models for confidential military operations, just hours after rival Anthropic’s negotiations with Defense Secretary Pete Hegseth broke down. According to Sensor Tower data, U.S. mobile uninstalls of ChatGPT surged 295% on February 28 compared to the previous day, and one-star reviews jumped 775%. Internal company staff also expressed dissatisfaction, with protest graffiti against “mass surveillance” appearing outside the San Francisco office.

Faced with internal and external pressure, CEO Sam Altman publicly admitted on March 2 that the signing “appeared opportunistic and rash.” He announced additional contract terms, clearly prohibiting the use of AI systems for monitoring U.S. citizens, and temporarily excluding intelligence agencies such as the NSA from the contract’s scope.

Risk Warning and DisclaimerThe market carries risks; investment requires caution. This article does not constitute personal investment advice, nor does it take into account an individual user's particular investment objectives, financial situation, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article suit their specific circumstances. Investments made accordingly are at one’s own risk. ```