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Artificial Intelligence
CIO Bulletin
16 October, 2024
As interest in AI grows around the world, U.S. defense agencies are shoveling money into artificial intelligence investments: contracts to 323 U.S. companies total nearly $670 million.
With regard to interest in artificial intelligence growing in the country’s defense and security forces, U.S. are spending billions to develop AI technologies. According to analysis on Department of Defense contracts awarded over the past 2 years by Fortune, more than $670 million dollars has been awarded to 323 firms as of two years ago, an increase of 20 percent from the previous 2 years.
That follows the release of OpenAI's ChatGPT, a tool that has sent the world into AI madness. In addition, DHS poured $22 million into 20 companies through the same type of AI work, more than tripling what it had spent over the previous two years.
This includes established tech firms like Palantir and other new companies, such as Scale AI. For example, ECS, a subsidiary of ASGN Inc., which is an NAIC contract holder, received the largest recent DoD contract — valued at $117 million — to do research and development for the US Army of AI algorithms. A $91 million contract was won by Palantir to provide an end to end AI approach for defense applications.
As of now, DoD has 83 active generative AI contracts worth, on average, between $4 million and $60 million per contract. By next year, total spending on AI projects could top $1 billion—and these contracts would be nearly fully executed.
Autonomous vehicle testing also raked in $33 million to Moresecorp and $15 million from Mile Two for AI enhanced workflows. Yet, the DHS awarded a $4 million contract for AI work related to the U.S. Coast Guard to marketing firm LMD, while spending less.