Leidos Holdings Inc. LDOS recently announced a strategic partnership with OpenAI to deploy advanced Artificial Intelligence (“AI”) solutions in support of key national priorities. The collaboration is aimed at improving the efficiency, speed and effectiveness of government agencies and other high assurance customers operating in mission-critical environments.
More on the Leidos OpenAI Partnership
Leidos plans to integrate OpenAI-powered generative and agentic AI capabilities into the core workflows of customers across several markets. These markets include digital modernization, health services, national security, infrastructure and defense, which are central to Leidos’ long-term NorthStar 2030 growth strategy.
The partnership is focused on embedding AI as a core capability within operational systems rather than using it as a standalone tool. By combining OpenAI advanced models with its own AI technologies, Leidos aims to speed up complex knowledge-based activities such as threat analysis, supply-chain monitoring and digital risk detection, while maintaining the high security and reliability standards required by government and defense customers.
Beyond customer solutions, the collaboration is also expected to strengthen Leidos' internal operations. Wider use of OpenAI platforms across the organization is expected to improve automation, streamline workflows and accelerate product design and delivery, supporting higher productivity and innovation.
Importance of AI
The AI market is increasing rapidly due to technologies like machine learning and computer vision changing how industries work. The increasing use of digital tools has created a demand for AI to process large amounts of data efficiently and deliver accurate predictions. With more data being created by technologies like the Internet of Things and 5G, AI is becoming even more important. In the defense sector, AI is playing a crucial role in enhancing security, enabling autonomous systems and improving decision-making in critical situations. Its ability to process vast amounts of information quickly and provide actionable insights is driving its adoption across industries.
This is likely to have prompted the Mordor Intelligence firm to forecast a compound annual growth rate of more than 41.95% for the global AI market during the 2026-2031 time period.
Other defense companies that are likely to enjoy the perks of the expanding AI market are discussed below.
Northrop Grumman Corporation NOC: In June 2025, the company expanded its use of NVIDIA technology to advance AI-driven space operations. The company will use NVIDIA’s Omniverse and Isaac Lab to develop robotics for spacecraft docking, servicing and on-orbit repairs. It also plans to apply AI across all mission phases to automate commands and improve spacecraft efficiency.
RTX Corporation RTX: In June 2025, RTX signed a 10-year Memorandum of Understanding with Singapore’s Economic Development Board. Through this deal, RTX gains a strategic foothold and institutional backing in a key innovation hub, which can accelerate its AI ambitions in multiple ways.
Lockheed Martin LMT: In October 2025, LMT announced plans to enhance its PAC-3 Missile Segment Enhancement system by integrating AI and machine learning to improve the speed and accuracy of air and missile defense operations. The AI-driven system enables faster threat detection, tracking and response, while also supporting real time adaptation to evolving threats and strengthening overall battlefield decision-making.
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Lockheed Martin Corporation (LMT): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report Leidos Holdings, Inc. (LDOS): Free Stock Analysis Report RTX Corporation (RTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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