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Reading: OpenAI simply gained a 2nd Australian authorities contract after being the one firm invited to bid
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Michigan Post > Blog > Startups > OpenAI simply gained a 2nd Australian authorities contract after being the one firm invited to bid
Startups

OpenAI simply gained a 2nd Australian authorities contract after being the one firm invited to bid

By Editorial Board Published October 23, 2025 5 Min Read
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OpenAI simply gained a 2nd Australian authorities contract after being the one firm invited to bid

OpenAI is steadily embedding itself within the Australian authorities, with the US tech big successful its second contract with none competitors as the general public sector is inspired to embrace public generative AI instruments.

The Digital Transformation Company (DTA) final week issued new steerage recommending companies and departments be inspired to make use of public generative AI instruments reminiscent of OpenAI’s ChatGPT for work involving OFFICIAL degree authorities knowledge.

OpenAI gained its first Australian authorities contract in June when it landed a small $50,000 one-year take care of Treasury for “software-as-a-service”.

It has now gained a second smaller $25,000 contract with the Commonwealth Grants Fee for the “provision of AI” for 12 months.

As a result of each contracts have been value below $80,000, the companies weren’t required to open them to aggressive tender — and OpenAI was the one firm invited to bid.

Whereas modest in dimension, the offers mark OpenAI’s first foothold in federal authorities and will pave the best way for bigger, longer-term engagements.

OpenAI involves Canberra

OpenAI has been actively increasing its presence in Canberra.

The corporate lately employed Bourke Avenue Advisory as its native lobbyist, in line with the federal register, and despatched senior executives to Australia final week to debate potential knowledge centre offers.

OpenAI chief international affairs Chris Lehane, talking at SXSW Sydney final week, stated Australia might play a pivotal function within the international AI infrastructure race.

OpenAI chief international affairs Chris Lehane spoke at SXSW Sydney final week concerning the function Australia might play. Photograph: Hanna Lassen/SXSW

“Australia could create frontier-class inference model that embeds local languages, customs and culture,” Lehane stated on the convention.

“You’d have an Australian-sovereign mannequin that enhances productiveness right here and exports it overseas.

“It’s chips, it’s knowledge, it’s power and it’s expertise – that’s the brand new stack of energy.

“Whichever country can marshal those resources will determine whether the world is built on democratic or autocratic AI.”

GenAI within the public sector

The brand new OpenAI contract was revealed in the identical week DTA launched new steerage for the Australian authorities’s use of public generative AI instruments, reminiscent of ChatGPT.

This recommendation encourages the expanded use of those instruments for a spread of labor involving info as much as the OFFICIAL degree of classification.

“Generative AI is here to stay,” DTA deputy CEO Lucy Poole stated in a press release.

“This steerage provides our workforce the arrogance to make use of generative AI instruments of their roles whereas holding safety and public belief on the centre of the whole lot we do.

“We don’t wish to be in a state of affairs the place workers, from any company, are utilizing these instruments with out correct recommendation.

“Ensuring staff have clear guidance on what information they can share with these services, and how, is critical to minimise risks and maximise the opportunities that AI presents to the public service.”

The framework introduces three overarching rules: shield privateness and safeguard authorities info; use judgement and critically assess generative AI outputs and be capable to clarify; and justify and take possession of your recommendation and choices.

The steerage permits public sector workers to make use of public generative AI instruments for OFFICIAL-level authorities info to assist with brainstorming, analysis, figuring out public out there analysis papers, suggesting methods to current program info and to help with knowledge evaluation and sample identification, amongst others.

It outlines that generative AI shouldn’t be used for any work involving delicate info, for assessing purposes or within the procurement course of.

It builds on final yr’s Technical Requirements for Authorities’s Use of Synthetic Intelligence, which defines 42 necessities throughout the AI system lifecycle — from design and knowledge by to monitoring and decommissioning — to make sure accountable and constant adoption.

The transfer follows an Australian Nationwide Audit Workplace report revealing not less than 20 authorities entities have been utilizing AI final yr with none formal insurance policies in place.

This story first appeared on Info Age. You possibly can learn the unique right here.

TAGGED:2ndAustralianbidCompanycontractgovernmentinvitedOpenAIwon
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