DoD Awards $800M in AI Contracts to OpenAI, Google, Anthropic, xAI for National Security

Alphabet Inc. (NASDAQ:GOOGL) is one of the best US stocks to buy according to Billionaires. On July 14, the US Department of Defense/DoD announced that it has awarded contracts worth ~$200 million each to 4 leading AI firms: OpenAI, Alphabet’s Google, Anthropic, and Elon Musk’s xAI.

These contracts aim to accelerate the adoption of advanced AI capabilities within the DoD, specifically by enabling the development of agentic AI workflows to address national security challenges. Agentic AI refers to AI-driven systems that can operate autonomously and adapt to changing conditions.

DoD Awards $800M in AI Contracts to OpenAI, Google, Anthropic, xAI for National Security

Photo by Firmbee.com on Unsplash

The initiative is part of a broader push by US government agencies to expand their use of AI, spurred by a White House order in April this year promoting AI adoption. Furthermore, President Donald Trump has moved to ease AI regulation by revoking a 2023 Biden-era executive order that sought to mitigate AI risks through mandatory data disclosures.

While we acknowledge the potential of GOOGL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GOOGL and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.