OpenAI
OpenAI is an artificial intelligence company that has transformed from a non-profit research organization into functionally Microsoft's AI partner, powering automated targeting systems and surveillance infrastructure used by the Israeli Occupation Forces in Gaza. Microsoft invested almost $13 billion in OpenAI.
OpenAI-Microsoft Partnership
OpenAI was founded as a nonprofit with an original mission of "advancing digital intelligence in the way most likely to benefit humanity as a whole, unconstrained by a need to generate financial return." The initial funding came in donations, plus compute credits and discounts from cloud providers including Amazon, Microsoft Azure, and Google Cloud.
However, in 2019 OpenAI decided to shift to a "Capped-Profit Model" OpenAI created OpenAI LP, a for-profit subsidiary controlled by the nonprofit OpenAI Inc. Investors could receive returns at 100x their investment. All profits beyond the cap supposedly would flow back to the nonprofit.
Microsoft's initial $1 Billion
In 2019, Microsoft made its first major investment of $1 billion into OpenAI. The partnership include specific arrangements:
- Exclusive Cloud Partnership: OpenAI would run exclusively on Microsoft Azure
- IP Licensing: OpenAI licensed some of its technology to Microsoft for commercialization
Microsoft's $10 Billion investment
In January 2023, Microsoft announced a "multiyear, multibillion dollar investment" - reported to be up to $10 billion. Between 2019 and early 2023, Microsoft had invested an additional $2 billion beyond the initial $1 billion. This investment came with terms:
- Microsoft entitled to 75% of OpenAI's profits until it recoups its investment
- After recoupment, Microsoft would receive 49% of profits up to the cap
OpenAI's Military-Industrial Complex integration
OpenAI undergone a complete strategic reversal, from explicitly prohibiting military applications to a major war contractor with $200 million in Pentagon contracts, battlefield AI deployments, and partnerships spanning the entire US national security apparatus. This transformation is at the core of AI militarization globally.
In January 2024, OpenAI quietly removed the phrase "military and warfare" from its usage policies. Later, OpenAI publicly announced a Pentagon contract. Now the company is directly on battlefields through its Anduril partnership.
Anduril partnership
Anduril specializes in autonomous military drones and AI-enhanced weapons systems. In December 2024 OpenAI Partnered with Zionist Palmer Luckey's and hist company Anduril Industries The collaboration integrates OpenAI models directly with Anduril's weapons systems offerings, including drone interceptors, autonomous submarines, and sentry towers.
The partnership includes OpenAI training its models on Anduril's "threat data library" to "rapidly synthesize time-sensitive data" and reduce human interaction in war operation.
Microsoft Azure
As OpenAI’s exclusive cloud partner, Microsoft integrates OpenAI’s technologies, like GPT and Codex, into its commercial and enterprise offerings, including Azure OpenAI services.
The Microsoft-OpenAI relationship has become a conduit for extensive military and war operations worldwide. Microsoft's $9 billion Joint Warfighting Cloud Capability contract provides cloud services across all U.S. Department of Defense classification levels with Azure OpenAI.
Israeli military surveillance
In August 2025, Leaked Microsoft documents reveal that Israeli Unit 8200 stores "a million calls an hour" of Palestinian communications on Azure servers, representing approximately 200 million hours of audio data. The program was initiated after a 2021 meeting between Unit 8200 commander Yossi Sariel and Microsoft CEO Satya Nadella.
The surveillance program spans multiple Israeli intelligence units including Unit 8200, Matzov (encryption), Mamram (computing), and Tikshuv (IT), with 11,500 terabytes of Israeli military data stored on Azure servers. Usage spiked 155% between June 2023 and April 2024, with Azure OpenAI comprising 75% of the Israeli military's AI service usage.
In January 2024, the Israeli military’s consumption of the Azure OpenAI suite of products spiked. At one stage in 2024, OpenAI’s tools accounted for a quarter of the military’s consumption of machine learning tools provided by Microsoft.
Global intelligence integration
Azure OpenAI services are now deployed across all US intelligence agencies, including the CIA, NSA, and FBI. The NSA has integrated OpenAI board member Paul Nakasone, an NSA director, directly into the company's governance structure.
Pentagon contracts and Integration
OpenAI got its first Pentagon contract in June 2025: a $200 million with the U.S. Defense Department Chief Digital and AI Office to develop "prototype frontier AI capabilities" for both "warfighting and enterprise domains.".
The contract explicitly covers battlefield applications, cybersecurity, and direct warfighting operations. The US Africa Command (AFRICOM) became the first direct U.S. military purchaser of OpenAI tools.
Sam Altman's defense establishment
Altman played a role in convincing Trump's Defense Secretary not to eliminate the Defense Innovation Unit. The unit has since facilitated $70 billion in war technology acquisitions and helped create AI war companies including Anduril, Shield AI, and Scale.ai.
He advocates for AI acceleration to maintain technological advantages over China, positioning military partnerships as essential for upholding "western" democratic values.
Whistleblower deaths
Suchir Balaji, a 26-year-old former OpenAI engineer who publicly criticized the company's copyright violations, was found dead in his San Francisco apartment in November 2024 with a gunshot wound. The medical examiner ruled it suicide despite family disputes.
Balaji had been a key witness in the New York Times lawsuit against OpenAI and was scheduled for additional interviews following his public criticism of the company.
The Axel Springer content partnership
OpenAI's December 2023 partnership with German media Zionist outlet Axel Springer this highlights the issue of content bias in AI training and outputs. The deal provides ChatGPT with content from POLITICO, Business Insider, BILD, and WELT, with Axel Springer content receiving "favorable positioning" in search results.
Axel Springer is known for "biased content" and operating propaganda outlets for Apartheid Israel and its CEO's views.
Sources:
- +972 Magazine Microsoft storing Israeli intelligence trove used to attack Palestinians
- Anduril Anduril Partners with OpenAI to Advance U.S. Artificial Intelligence Leadership and Protect U.S. and Allied Forces
- Axios Saving a key bridge between Pentagon, Silicon Valley from the axe
- Forbes Microsoft Confirms Its $10 Billion Investment Into ChatGPT, Changing How Microsoft Competes With Google, Apple And Other Tech Giants
- Fortune An OpenAI whistleblower was found dead in his apartment. Now his mother wants answers
- GSA GSA Announces New Partnership with OpenAI, Delivering Deep Discount to ChatGPT Gov-Wide Through MAS
- CNBC OpenAI wins $200 million U.S. defense contract
- CNBC Microsoft’s $13 billion bet on OpenAI carries huge potential along with plenty of uncertainty
- CNBC OpenAI partners with defense company Anduril
- CNN Pentagon awards multibillion-dollar cloud contract to Amazon, Google, Microsoft and Oracle
- Microsoft OpenAI forms exclusive computing partnership with Microsoft to build new Azure AI supercomputing technologies
- Microsoft Microsoft and OpenAI extend partnership
- Microsoft Microsoft and OpenAI evolve partnership to drive the next phase of AI
- Microsoft Azure OpenAI Service now authorized for all U.S. Government data classification levels
- MIT Technology Review OpenAI’s new defense contract completes its military pivot
- OpenAI Introducing OpenAI for Government
- OpenAI Introducing OpenAI
- OpenAI Our structure
- OpenAI Microsoft invests in and partners with OpenAI to support us building beneficial AGI
- OpenAI OpenAI appoints Retired U.S. Army General Paul M. Nakasone to Board of Directors
- OpenAI Partnership with Axel Springer to deepen beneficial use of AI in journalism
- PBS The New York Times sues OpenAI and Microsoft over the use of its stories to train chatbots
- Reuters Global news publisher Axel Springer partners with OpenAI in landmark deal
- TechChurch Microsoft invests billions more dollars in OpenAI, extends partnership
- The Guardian Revealed: Microsoft deepened ties with Israeli military to provide tech support during Gaza war
- The Intercept OpenAI Quietly Deletes Ban on Using ChatGPT for “Military and Warfare”
- The Intercept U.S. Military Makes First Confirmed OpenAI Purchase for War-Fighting Forces
- The Washington Post OpenAI partners with weapons start-up Anduril on military AI
- X Palmer Luckey