U.S. security agencies have spent $700 million on AI

U.S. defense and security agencies have spent $700 million on AI projects since ChatGPT’s launch. According to a Fortune analysis by Kali Hays, the Department of Defense (DOD) and the Department of Homeland Security (DHS) have contracted hundreds of companies to develop and test AI algorithms and tools. The DOD awarded roughly $670 million to nearly 323 companies, a 20% increase compared to the prior two years. DHS awarded $22 million to 20 companies, tripling its spending. Contractors range from established firms like Palantir to startups like Scale AI. The largest DOD contract, initially $117 million and later increased to $174 million, went to ECS for developing AI algorithms for the U.S. Army. Palantir received $91 million to test an AI approach for the Army.