OpenAI & Leidos: AI to Transform Federal Operations

OpenAI & Leidos: AI to Transform Federal Operations

The email landed with a thud: a cryptic warning about “AI integration” and “national security.” A chill snaked down my spine. Was this the dawn of hyper-efficient government, or something far more unsettling? OpenAI, the company that brought us ChatGPT, is now partnering with Leidos, a major government contractor, to “transform federal operations” with artificial intelligence.

A Quiet Giant Steps Into the AI Spotlight

Think about those corporations that wield immense power behind the scenes. Leidos, with a market cap of approximately $24 billion USD (€22.3 billion), fits the bill. They operate in the shadows, influencing policy and securing lucrative contracts without the need for flashy marketing campaigns. Now, they’re teaming up with OpenAI to weave AI into the fabric of federal agencies, specifically focusing on national security, defense, and infrastructure.

“Leidos and OpenAI are harnessing the transformative power of AI to help improve how federal agencies operate,” said Ted Tanner, the CTO of Leidos, in a recent press release. What does this “transformation” really entail?

How deeply is Leidos entrenched in the federal government?

Leidos’ involvement runs deep. They handle procurement, logistics, and the intricate legacy software systems that can make even the most seasoned bureaucrat tear their hair out. Remember the DOGE budget cuts last year? Leidos initially seemed to be in the crosshairs, with a $1 billion USD (€930 million) contract reportedly slashed. But in a twist, DOGE reassessed, reducing the cut to a mere $560,000 USD (€520,000). A Leidos spokesman, Brandon Ver Velde, told the Times the following month, “We strongly support the goal of creating a dramatically more efficient and effective federal government that costs taxpayers less money.”

“Safeguarding the Homeland” in the Age of AI

Roy Stevens, president of Leidos’ “Homeland Sector,” emphasized the company’s “strong relationship with DHS” in a 2023 statement. Their work includes “supporting cross-agency intelligence sharing and secure collaboration for federal and civilian agencies,” all in the name of “safeguarding the homeland.” This is where the partnership with OpenAI starts to feel like a high-stakes poker game.

Before this alliance, OpenAI already had a dedicated product called “OpenAI for Government.” The company announced in a blog post that they had secured a contract with the Pentagon “with a $200 million ceiling” (€186 million). Prior to that, OpenAI had existing contracts across U.S. National Labs, the Air Force Research Laboratory, NASA, NIH, and the Treasury.

What previous government work has OpenAI completed?

OpenAI’s footprint in the government sector is already substantial. They’ve worked with NASA, NIH, and the Treasury, among others. Leidos now acts as a force multiplier, enabling OpenAI to scale its solutions across a wider range of federal operations. Think of Leidos as the experienced Sherpa guiding the AI newcomer up a treacherous mountain face. The question is: who sets the route?

One thing to keep in mind: Leidos has a "strong relationship with DHS," the umbrella organization of Homeland Security Investigations, Customs and Border Protection (CBP), and Immigration and Customs Enforcement (ICE). I can’t help but wonder, what safeguards are in place to prevent the misuse of these powerful AI tools within those agencies?

How will this partnership affect national security?

This collaboration could lead to faster threat detection, more efficient resource allocation, and improved cybersecurity. However, it also raises concerns about potential biases in algorithms, the erosion of privacy, and the concentration of power in the hands of a few corporations. The efficiency gains could come at a steep price if ethical considerations are not prioritized.

The partnership between OpenAI and Leidos is a bellwether – a sign of the shape of things to come. What choices will this new reality force us to make?